"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"
- Gareth Atkins - Foxtons
Foxtons latest rental figures have revealed that rent is up 8% year-on-year in London, with the average now sitting at £582. Yet despite the increase, when analysed on a month-by-month basis, average rental prices were down 3% when compared to October.
Foxtons found that studios have shown the largest annual rent increase, up 11% year on year. East London stood out with an 11% year-on-year increase, surpassing all other areas in London in the growth of rent achieved.
There was a 20% decrease in applicant demand in November in line with the seasonal slowdown of the lettings market. There was a 12% decline in 2023, compared to 2022, reflecting the lettings market's return to more typical levels following heightened demand in 2022.
Analysis of Zoopla data found that London experienced a 13% increase in new instructions compared to November 2022, however, there was a 4% decline compared to October 2023. 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.
Applicant budgets have remained at a higher level in 2023 than any previous year, marking a 7% year-on-year increase from 2022. While there was a marginal 2% decrease month-on-month, this aligns with the customary seasonal decline observed annually. West London saw the most significant increase, reaching £482 through a 12% rise in applicant budgets in the region.
Gareth Atkins, Managing Director of Lettings at Foxtons, 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. However, 2024 may also see some changes in the sector with Rental Reforms, so at Foxtons, we invest substantial time and resources in state-of-the-art analytics and robust expert insight to ensure our clients are prepared, whatever the new year brings.”
Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent at Foxtons, 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.”
