Data from London-focussed lettings agency Foxtons has found that rent is up eight per cent year-on-year, with the London average now sitting at £582 per week. 

Despite the year-on-year increase, average rental prices were down three per cent when compared to October.

Foxtons found that studios have shown the largest annual rent increase, up 11 per cent year on year. And East London stood out with an 11 per cent year-on-year increase, surpassing all other areas in London in growth of rent achieved.

There was a 20 per cent decrease in applicant demand in November in line with the seasonal slowdown of the lettings market. There was 12 per cent decline in 2023, compared to 2022, reflecting the lettings market’s return to more typical levels following heightened demand in 2022.

Foxtons’ analysis of Zoopla data found that London experienced a 13 per cent increase in new instructions compared to November 2022, however there was a 4four per cent decline compared to October 2023. Westminster maintained its trend of the highest increase in new market listings year to date, with a share of 12 per cent.

The ratio of new renters to new instructions stood at 12 renters per instruction in November, a decrease compared to October. South London had the highest number of renters per instruction with a year-to-date average of 25. On a month-on-month basis, South London rose from 15 to 17.

Applicant budgets have remained at a higher level in 2023 than any previous year. 

Gareth Atkins, managing director of lettings at Foxtons, says: “If the trends we saw this year continue, especially those from the latter half of 2023, I expect we will see much more consistent pricing with a gradual increase and decrease on either side of Q3 and more stability in available stock. 

“A predictable market will be a welcome respite for landlords and renters. However, 2024 may also see some changes in the sector with Rental Reforms, so at Foxtons we invest substantial time and resources in state-of-the-art analytics and robust expert insight to ensure our clients are prepared, whatever the new year brings.”