London’s rental market heats up as summer lets season begins

London’s rental market heats up as summer lets season begins

10:08 AM, 22nd July 2024, About 4 months ago

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London’s rental market is showing signs of life as the summer lettings season gets underway as tenant applicant demand surged by 15% in June compared to May, according to data from Foxtons.

This increase matches pre-pandemic trends and is expected to continue over the coming months.

Despite the rise in demand, average rent prices held steady month-on-month.

However, rents have dipped slightly year-on-year by 2%.

Renter demand rose 15% in June

The firm’s managing director of lettings, Gareth Atkins, said: “The peak lettings season has begun in earnest; our data shows renter demand rose 15% in June, in line with last year’s numbers so far, and it should continue to push upwards through the coming months.

“This means the market will be fast-paced, so renters will need to be prepared and agile to achieve the best results.”

Foxtons says that the average rent for one-bedroom flats has risen year-on-year, reflecting the growing preference for these properties and the increasing budgets of renters.

The average budget for applicants sits at £547 per month, the highest recorded in recent years.

Big variations in demand

While the headline figures suggest a stable market, there are big variations in demand across different London boroughs.

Central areas are experiencing a more balanced market, whereas outer regions are witnessing larger swings in supply, demand and rent prices.

The report also highlights the potential of Build to Rent (BtR) developments to address the growing demand for high-quality rental accommodation, particularly in London.


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