The London rental market has seen a 36% increase in property listings in May this year compared to April, revealed the latest Foxtons lettings market index.
This also represents a 10% year-on-year growth in property listings.
Over 20% of new instructions in the year to date were within Tower Hamlets and Westminster, with the latter having 11% of new instructions alone.
According to Foxtons, the increase in new listings is helping to create a more balanced rental market in the capital.
The lettings index data also showed a 20% monthly growth in applicant demand — however, the real estate agency noted this is slightly lower than in previous years, as renters have more choice and less competition for properties.
With a larger number of new instructions entering the market so far in 2024, there was a 21% reduction in new renters per instruction, despite the increase in applicant demand.
Foxtons expects to see the volumes of applicant demand through the summer months remain similar to last year.
Average rent in London was £577 per week in May, slightly behind the £606 average during the same month last year.
There was a marginal 2% decrease in rent year to date compared to 2023.
Gareth Atkins, managing director of lettings at Foxtons, said: “As we move in to peak summer lettings season, supply is growing.
“Renter demand is also growing, mirroring 2023's Q2 trends with a 20% month-on-month increase.
“If demand follows last year’s trends through summer, Q3 will be a very busy market.
“The announcement of the general election at the same time has resulted in the shelving of the Renters Reform Bill — this means there will be no immediate changes to fixed-term tenancies or any of the other provisions within the bill.”
