The number of new rental instructions in February was 20 per cent higher year-on-year, says London-focused agency Foxtons.

Average rent achieved rose three per cent in just a month, averaging £561, and applicant demand this February decreased 15 per cent year-on-year

However, despite being 10 per cent lower than January 2024, the number of new instructions is 19 per cent up this year to date when compared to the same period in 2023.

Applicant demand in February 2024 decreased by 15 per cent which indicates a more moderate market than last year. 

While South London continued to be the most in demand area, it also saw the largest decline in applicants, 21 per cent lower than the same period 2023.

London rental prices decreased two per cent year-on-year, but rose three per cent compared to January 2024, averaging £561. West London is the only region that saw a year-on-year increase, rising from an average of £459 in 2023 to £487 in 2024, year to date.

The number of new renters per new instruction in London has been stable since October 2023, remaining between 12 and 14 applicants per instruction. The year-on-year decrease of 29 per cent highlights indicates shift in market dynamics as demand reduced and supply increased.

Gareth Atkins, Managing Director of Lettings at Foxtons, says: “The London lettings market is adjusting as we predicted, with applicant demand down 15 per cent and listings up 20 per cent compared to February last year. 

“Landlords must adapt, as simply listing their property is no longer enough to achieve a good return. 

“Though applicant numbers remain higher than 2019, we are conducting 23 per cent more viewings in order to secure tenancies. Building a competitive pricing strategy and instructing a proactive agent are crucial for a landlord’s success in this evolving market.”

Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent at the agency, comments: “South London had the highest demand, Central London had the highest budgets and West London was the only region to see a year-on-year increase in average price this February. 

“Dig deeper, and you’ll find even greater differences within each region. Landlords can set their listings apart by understanding and adapting to nuances in their local market. 

“That’s why we leverage real-time data and analytics to optimise our clients strategies, keeping landlords competitive within micro-markets.”