London’s rental market sees more supply and less competition

London’s rental market sees more supply and less competition

0:05 AM, 16th October 2023, About 9 months ago

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London’s rental market is showing signs of recovery after a pandemic-induced slump with news that the supply of new rental listings grew steadily in September, up 10% year-on-year.

That’s according to estate agents Foxtons, which also warns that rents grew by 10% over the same period.

However, demand for rental properties remains high, with an average of 19 renters per new instruction – that’s down 19% year-on-year and 17% month-on-month.

The data also shows that rents have remained at record highs and are close to £600 per week, despite the increase in supply.

‘Supply of rental properties in London has increased’

The managing director of lettings at Foxtons, Gareth Atkins, said: “Supply of rental properties in London has increased 10% compared to this time last year, which is very welcome news.

“However, we are still behind the levels we’ve seen in 2019, 2021 and of course the post-lockdown market of 2020, so we’re not back to a normal seasonal market just yet.

“Prices continue to be at record levels and I don’t expect that to change significantly in the short term, given we are currently still registering 19 tenants for every property we have on the market.”

Low levels of rental stock

The London rental market has witnessed a shift from the low levels of rental stock seen last summer to a more normal situation with more available properties this summer.

Also, the demand from tenants has normalised after a peak season.

Renters also had higher budgets than previous years, despite a seasonal 3% drop from August to September.

The data also reveals that the rental market dynamics changed towards the end of the summer, with both supply and demand falling month-on-month.

Westminster was the area with the most new rental listings in London, accounting for 11% of the total year to date.

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