Tenant demand on the rise in London

Demand still remains strong in London, according to new data.

Latest figures from Foxtons Lettings Index reveal that applicant demand rose 19% from May to June this year.

The letting agents say London enters the peak lettings season usually in August and September.

Central London continued to have the highest average weekly rent

Foxtons found that average weekly rent has dipped slightly (2%) compared to May 2023, now sitting just below £600.

Central London continued to have the highest average weekly rent at £680, 21% higher than in North London, which held the second-highest average at £560 per week.

The average rental budget increased 2% month-on-month, reaching £529 per week, and was up 8% year-on-year.

Average budgets reached £572 in central London which was 6% higher than June last year. East London has experienced the highest year-on-year increase with budgets up 12%.

Fierce competition this year

The percentage of rental budgets spent to secure a property fell slightly for the first time in 2023.

Renters spent 99% of their budgets on average, a 2% decrease from May. Renters in Central London continued to spend the highest proportions of their budgets to secure a property at 103%.

Sarah Tonkinson, managing director of Institutional PRS and Build to Rent, said: “While London saw over 4,000 more new listings than it did last June, partially addressing the fast-growing need for homes, demand is already on the rise – 19% up month on month in June – and August and September mark the traditional summer peak. There will be fierce competition this year.

She added: “We’ll need more supply now, as well as strategic homebuilding in the coming years, to continue to draw talent into our workforce and public sectors from across the country and around the world.”

Market showed an increase in new listings

In June, the market showed a 10% increase in new listings compared to May.

Last month saw almost 35,500 new listings, over 4,000 listings more compared to June last year. Over 20% of new instructions, year to date, were within Westminster and Tower Hamlets.