New figures from Foxtons show that average weekly rent in July 2023 was 12 per cent higher than July 2022.
The agency’s analysis of London data saw a six per increase in new listings compared to the previous year.
Average weekly rent remained stable in July at £597 per week, which was only slightly lower than the £599 per week recorded in June, but 12 per week higher than July 2022.
Central London continued to command the highest average weekly rent, at almost £680. When comparing 2023 to 2022 year to date, the average weekly rent across London increased 12 per cent with East London increasing 15 per cent.
In July London saw seven per cent more instructions than in June, which translates into roughly 2,500 more instructions, and new listings were up six per cent when compared to July 2022.
Foxtons’ data found that that applicant demand increased 13 per cent from June, as July brought London into peak lettings season. When compared to 2022, July demand was lower, with a four per cent decrease year to date and a decline of 15 per cent versus last July.
In July, Foxtons saw an average of 21 rental applicants per new instruction, an 18 per cent increase month-on-month, however a 12 per cent decrease when compared to 2022.
East London saw a 63 per cent increase rising to 26 applicants per instruction, becoming the second highest after South London which has an average of 30 applicants per instruction in July.
Rental applicant budgets have held a two per cent increase month-on-month since April, and this trend was consistent through July. Foxtons data reveals that budgets have, so far, been higher than previous years with a seven per cent increase from 2022 year to date.
The average percentage of rental spend in July remained at 99 per cent, which was two per cent higher than 2022 year-to-date. Central London was the only region where renters were, on average, spending higher than their budgets, with the average sitting at 102 per cent.
Of all rental deals over budget year-to-date, 36 per cent of them were in Central London.
Sarah Tonkinson, Foxtons Build To Rent chief, says: “July’s market experienced a rise in activity that always comes with peak lettings season; demand increased 13 per cent.
“This period always sees a flurry of activity as families move to London, new graduates head for London workplaces and the student population make plans for the coming academic year.
“The good news for renters is that there is six per cent more stock available compared this this time last year, but competition is still fierce for quality properties and allowing enough time for your search is still key.”