The latest lettings market snapshot produced by London-focussed property data firm LonRes shows little change in the supply-constrained rental sector.

However, figures show that in May the number of new lets agreed was down by 25.4 per cent compared to a year earlier. LonRes says this is down purely to the low levels of stock coming to market. 

New instructions are 6.3 per cent lower on an annual basis and 47.7 per cent below their pre-pandemic level based on data from 2017 to 2019. 

But the firm does offer a word of caution saying that the latter figure may overstate the fall, because demand is so strong many properties are let without needing to be listed in the first place.

Rental growth in the London markets under study in May was 8.5 per cent on an annual basis, a slight rise on recent months but well below the figures seen last year.  Rental values across Prime London are around 25 to 30 per cent above where they were pre-pandemic.

While demand continues to outstrip supply in general, changes in time on the market suggest higher value properties are becoming slightly slower to let.  

Compared to their benchmarks from 2017 to 2019, all value bands were being let much more quickly a year ago. But the more affordable properties continue to let very quickly, while those in the £1000+ per week band have slowed by more than 10 per cent.