Record rental stock levels and flat rent rises in London

London’s private rented sector (PRS) saw a big shift in October, with Foxtons’ latest lettings market index revealing record-high stock levels.

This marks an 8% increase compared to the same period last year, making it the highest level of new stock in four years.

Despite the increase in supply, tenant demand remained relatively strong, though marginally lower than the previous year.

Central London, in particular, experienced robust demand, with a 15% year-to-date increase compared to 2023.

Rental listings in London

Foxtons’ managing director of lettings, Gareth Atkins, said: “Rental listings in London reached their highest October levels since 2019, signalling a notable increase in stock.

“This is positive news for both renters, who benefit from a greater choice of properties, and landlords who may find it easier to attract tenants.

“The stock of available rental properties only decreased by 2% from September levels, which is highly unusual for this time of year, defying the typical seasonal slowdown in the rental market.”

He added: “Additionally, the Autumn Budget provided some welcome relief to landlords, with existing rental properties unaffected by changes, as Capital Gains Tax remained unchanged, maintaining stability in the market.”

Landlords in central London

However, the peak lettings season did see a typical slowdown, with a 24% reduction in applicants per new instruction from September to October.

That wasn’t the case for landlords in central London where there was an 11% rise in applicants per new instruction compared to 2023.

Foxtons also says that following a yearly high rent of £593 per week in September, there has been a slight cooling in October with rents falling by 4%.

All regions of London have seen rents remain mostly in line with the same prices last year – highlighting renter affordability issues, the firm says.