The latest market analysis by London lettings agency Chestertons, comparing January 2023 to the same month last year, shows the rental market continuing to normalise with growing supply.

The number of properties available to rent through Chestertons was 36 per cent higher last month than a year ago, and 14 per cent more new rental properties came onto the market in January 2023 compared to January 2022.

This uplift in available rental properties encouraged more tenants to look to move and prospective tenants went on eight per cent more viewings than in January 2022.

In addition, 13 per cent more new tenancies were agreed compared to last January.

Richard Davies, chief operating officer at Chestertons, says: “London’s property market has always been extremely competitive with many renters willing to offer above asking rent to secure a property. As we are now seeing more properties coming on the market, some landlords are prepared to reduce their asking rent. This is a key sign that the rental market is rebalancing following incredibly rapid hikes in rent seen in 2021 and 2022.”

The market development mirrors Chestertons’ previously-released market forecast for 2023 which predicted that more rental properties would rebalance the capital and reduce the pace of rental price growth. 

Chestertons predicted London rents to continue to grow by up to five per cent over 2023 before plateauing in 2024.