0:04 AM, 21st February 2025, About 4 months ago
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London’s private rented sector saw a revival in January with two leading agents seeing a strong performance.
Foxtons says that tenant interest surged by 83% since December, while Chestertons says that tenants making offers jumped by a third.
According to Foxtons, its lettings market index also reveals that the number of available rental properties rose by 51% over the same period.
Average rents edged up by 2% compared to January 2024, signalling a steady start to the year.
The firm says that the capital’s PRS is finding its footing in 2025, with more stock to meet renter demand.
The firm’s managing director lettings, Gareth Atkins, said: “Foxtons’ analysis of new listings in the London rental market reveals a slight increase from this time last year, but a 55% increase in available properties compared to the same period of 2023 – highlighting a notable expansion in supply.
“While the coming spring market should bring an uptick in demand, the substantial growth in supply is contributing to increased competition among available properties.”
He adds: “The London lettings market is therefore looking as if it will stabilise as we move into the spring offering predictability for both renters and landlords.”
Foxtons says that tenant preferences vary across the city, but these tend to be shifting priorities rather than drastic market upheavals.
Despite a modest 3% dip in renter demand compared to January 2024, certain areas bucked the trend.
Central London saw a striking 15% jump in interest year-on-year, with North London close behind at 13%.
West London, however, recorded a 15% drop, hinting at the evolving tastes among renters.
The number of prospective tenants per new listing slipped by 2% from last January, though north London stood out with a 25% increase — the highest across London – and a 22% rise from December 2024.
Tenant budgets have also shifted, climbing 3% from both December 2024 and January 2024.
South London led with a 5% year-on-year boost, while studio flat budgets shrank by 17% since last January.
New listings dipped slightly by 5% compared to January 2024 but soared 51% from December.
Westminster topped the boroughs with an 11% rise in fresh properties.
Rental costs in central and south London climbed 5% from a year ago, outpacing the citywide 2% increase.
Meanwhile, Chestertons reports a bustling start to the 2025 rental market in London, with a 22% rise in tenant enquiries.
There was also a 34% jump in offers made on properties in January compared to the same month in 2024.
Adam Jennings, Chestertons’ head of lettings, said: “From the very beginning of January, our branches have been receiving a high level of enquiries from tenants, which picked up even further towards the end of the month.
“Some of this uplift is due to rents having coming down slightly in the second half of last year and savvy tenants recognising that now is a good time to lock-in a deal, while rents are still down from the highs we saw previously.”
He added: “Whilst demand for rental properties is on the up, the number of available properties has remained at 2024 levels, which means more tenants will be competing for the same property.”
Chestertons’ data show that Wandsworth and Richmond topped the list of the most sought-after locations for renters in January.
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