New figures from London-focussed agency Foxtons show that rents climbed steadily throughout 2022, finishing 20 per cent higher than in 2021.
High demand was a key factor throughout 2022, and overall, it remained 14 per cent higher than in 2021. Demand in December followed the regular downward trend around Christmas, falling 27 per cent month on month.
There were 18 renters competing for every new property in December, a 23 per cent increase on the previous month and 32 per cent higher than the previous year. West London was the most competitive area in December with 31 renters per new instruction, while South London followed with 28 renters per new instruction.
Using industry data, Foxtons found that new listings in December dropped below 20,000, falling a third month on month and reaching a four year low. Across the entire year, 2022 had a third fewer listings than 2021.
At £551, December’s average weekly rental price remained flat with November. However, hovering just below the record-breaking prices in previous months, this average rent breaks records for end-of-year prices. Central London remained the most expensive area in London, with average weekly rents 26 per cent higher than the previous year.
Foxtons lettings managing director Gareth Atkins says: “Competition was higher than usual this December, with 18 renters per each new instruction – a 23 per cent increase from November – so landlords saw more interest around their new listings than they’d typically expect to see this time of year.
“Looking forward, London is starting 2023 with comparable levels of rental demand and supply to 2022, which might indicate a similarly strong market to 2022’s first quarter. However, I suspect we’ll see the market rise more steadily than last year’s spikes, which is more akin to pre-pandemic seasonality.”
And Sarah Tonkinson – Foxtons’ Build To Rent chief – adds: “Last summer, we published a London Report posing the question on whether we’re seeing a ‘new normal’ emerge, and as I look at how the supply/demand imbalance intensified through the year, I believe the answer is yes. Demand remains high and I do not see a great glut of stock on the horizon – that doesn’t happen in London. As London’s overall demand grows ever higher, renters coming to the market must be savvy, prepared and persistent, talk to agents and give themselves more time to search.”
