The latest Foxtons Lettings Market Index has shown a 12% increase in tenant demand for London rental properties in April compared to March, and a 6% rise year-on-year.
According to the estate agency, this is a result of improved sentiment across the market, and the seasonal uptorn in the lettings market, as the increase of supply in the first quarter had slowed competition, which renters have taken advantage of to make a move.
In terms of supply, April 2024 had the same number of new listings as the same month last year — however, the index highlights an 11% increase in new market listings since the beginning of 2024.
The average rental price is in line with 2023, having increased only by 3% in April 2024 — the average price across all of London is currently sitting at £555.
New renters per new instruction has remained constant at an average of 14 per instruction throughout the whole of 2024 so far, which is 22% down compared to 2023.
Gareth Atkins, managing director of lettings at Foxtons, said: “The first quarter of 2024 saw a significant influx of new properties compared with 2023 and as such, less renters per property, or in broad terms, less competition.
“One of the knock-on effects of that was a stagnation of average prices, which we predicted in January.
“Early data from Q2 has seen not only that supply slowed, but also the return of 2023 levels of applicants which, if it continues, would indicate a stronger rental market.”
Sarah Tonkinson, managing director of institutional PRS and BTR at Foxtons, added: "The spring market has definitely sprung into action, and registrations for BTR are coming in thick and fast.
“Foxtons’ BTR portfolio is already seeing a significant increase in under offer and exchanged leases compared to the same period last year.”
