London’s rental market shows signs of revival

London’s rental market appears to be picking up as tenant demand rises after data shows there was a 12% rise in applicants in April – the first time since January.

Data from Foxtons shows that tenant demand is down 10% year-on-year, but it appears that renters are taking advantage of less competition to move home.

The firm’s managing director lettings, Gareth Atkins, said: “The first quarter of 2024 saw a significant influx of new properties compared with 2023 and as such, less renters per property – or in broad terms, competition.

“One of the knock-on effects of that was a stagnation of average prices, which we predicted in January. ”

He adds: “Early data from quarter two has seen not only that supply slowed but also the return of 2023 levels of applicants which, if it continues, would indicate a stronger rental market.”

Tenant budgets continue to climb

Foxtons also highlights that tenant budgets continue to climb, and the average weekly budget is up 3% year-on-year, with west London boasting the lowest average at £481 (a 4% increase).

Central London remains the most expensive area, with an average budget of £580.

Average rents in London rose by 3% in April with the average rent in the capital now at £555.

Since the beginning of 2024, listings have risen by 11% with the number of applicants averaging 14 per new instruction – which is down 22% on April last year.

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