Renters in London see an 8% annual rise in rents

Rents in London have increased by 8% year-on-year, with the average rent now at £582, Foxtons reveals.

The estate agent also highlights that despite the year-on-year increase, the average rent price decreased by 3% in November.

Foxtons has analysed Zoopla data and found that the capital saw a 13% rise in new instructions compared to November last year.

However, there was a 4% decline compared to the month before.

‘More stability in available stock’

The managing director of lettings at Foxtons, Gareth Atkins, said: “If the trends we saw this year continue, especially those from the latter half of 2023, I expect we will see much more consistent pricing with a gradual increase and decrease on either side of Q3 and more stability in available stock.

“A predictable market will be a welcome respite for landlords and renters.”

Highest increase in new market listings

Westminster maintained its trend of the highest increase in new market listings year to date, with a share of 12%.

The ratio of new renters to new instructions stood at 12 renters per instruction in November, a 9% decrease compared to October.

South London had the highest number of renters per instruction with a year-to-date average of 25.

On a month-on-month basis, South London saw a 10% increase, rising from 15 to 17.

‘More of the typical, seasonal trends’

Foxtons’ managing director of institutional PRS and Build to Rent, Sarah Tonkinson, said: “November’s market followed October’s lead with more of the typical, seasonal trends we’d expect.

“However, we’re very busy at Foxtons and we are looking forward to 2024.

“Londoners are calling for new homes to rent, and we can see a lot of exciting opportunities to rent in the Capital coming their way in the new year.”

Tenant applicant budgets have remained at a higher level

Foxtons also says that tenant applicant budgets have remained at a higher level in 2023 than any previous year, marking a 7% year-on-year increase from 2022.

West London saw the most significant increase, reaching £482 through a 12% rise in applicant budgets in the region.

The agency found that studios have shown the largest annual rent increase, up 11% year on year.

East London stands out with an 11% year-on-year increase, surpassing all other areas in London in growth of rent achieved.

There was a 20% decrease in applicant demand in November in line with the seasonal slowdown of the lettings market.

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