London Rental Market Analysis: Foxtons Reports 12% Increase in Demand

Sentiment in the London rental market is showing signs of improvement, with Foxtons data revealing a 12% increase in tenant demand in April compared to the previous month. This surge in demand can be attributed to the seasonal upturn in the lettings market, as well as a noticeable increase in supply during the first quarter of the year. Renters have capitalized on the decreased competition in the market, leading to a rise in demand for rental properties.

Looking at the year-to-date figures, there was a 10% decrease in demand in 2024 compared to the previous year. However, April 2024 witnessed a 6% increase in demand compared to the same period in 2023. Despite this fluctuation, the average rental prices in London have remained consistent with a 3% increase in April. The average rental price across all of London is currently sitting at 555.

Furthermore, there has been an 11% increase in new market listings since the beginning of 2024. Despite the influx of new listings, the number of new listings in April remained the same as last year. Foxtons predicts that rental prices will continue to track closely over the next quarter.

On the applicant side, budgets have seen a 3% increase in 2024 compared to the previous year. This increase in budget aligns with the rising demand for rental properties. West London has the lowest average applicant budget at 481, while Central London commands the highest average budget at 580.

Gareth Atkins, Foxtons' managing director of lettings, notes the impact of increased property supply on the market competition. He anticipates a stronger rental market in the coming months if the current trend of returning applicant levels continues. Additionally, Foxtons' managing director of institutional private rented sector and built to rent highlights the surge in registrations for Build to Rent properties, indicating a promising outlook for the rental market.

In conclusion, the London rental market is witnessing a positive trend in demand, supply, and applicant budgets. With the spring market in full swing, Foxtons anticipates a buoyant rental market in the upcoming months with continued growth in tenant demand and rental prices.