Weekly rents in London reach record breaking high

Weekly rents in London reach record breaking high

0:00 AM, 19th June 2023, About 11 months ago

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New figures reveal Londoners are having to pay £600 a week for rent.

Figures from Foxtons reveal that average weekly rental prices in May have surpassed the peak of 2022, increasing 8% from the previous month.

New listings increased 22% from April to May, whilst applicant demand increased 31%.

Renter demand is outstripping supply

Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent, said: “We are right on the cusp of the summer lettings rush, and with key metrics reaching similar levels to last year, we know we’re in for another busy summer.

“There was a 22% increase in new listings in May, yet renter demand is already easily outstripping supply. Weekly rent prices have passed £600, once again breaking records, and everyone will be closely watching this metric as the market climbs towards peak season.”

Central London achieved the highest average weekly rent. However, East London showed the highest year-on-year increase at 18% compared to May 2022.

Percentage of budget that renters spend to secure a property has increased

Data from Foxtons reveals the ratio of new renters per new instruction increased 8% from April to May, while competition decreased 5% year on year.

West and South London remained the most competitive regions, with 27 renters per each new instruction year-to-date. This is a 9% increase compared to last year in West London.

The average rental budget for applicants increased by 2% from April to May. Applicants looking to rent in North and East London increased their budgets the most, budgeting 12% more than last year.

The percentage of budget that renters spend to secure a property increased for the first time in three months, taking the overall average to 102%.

Renters in Central London spent 108% of their registered budget in May 2023, a 7% increase compared to April 2023.

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