Figures from London-focussed agency Foxtons suggest that rentals have reaching the highest ever weekly price in the capital.
The average in September was £553 per week, breaking June 2022’s record of £549 per week; and Central London continued to produce the highest average weekly rent this year at £636, a 30 per cent increase on prices seen in 2021.
Levels of rental stock remain low and in September there were just 23,000 new listings, the lowest monthly volume of new instructions this year. The number of new listings year-to-date is 38 per cent lower than the same period last year.
The data finds that despite a seasonal reduction in demand, the market has not shown its typical signs of autumn cooling.
Demand remained high with an average of 29 renters competing for every new property in September. This was slightly down from the 33 applicants per instruction in August, but still higher than anything Foxtons saw in the three preceding years.
The South and East London regions had the most competition with 37 applicants per instruction, and the North London region saw the largest monthly increase with 20 per cent more applicants per instruction.
Foxtons data also found that there was a notable increase in the proportion of budget that renters were willing to spend to secure a property. In September 2022, renters spent 101 per cent of their registered budget, slightly more than the 98 per cent in August.
“This demand was triggered by huge numbers of new renters looking for property: students physically returned to London post Covid, corporate relocations resumed at full pace and rising interest rates persuaded some buyers to continue renting in the immediate future” explains Gareth Atkins, Foxtons’ letting managing director.
And Sarah Tonkinson, Foxtons, managing director of Build to Rent, adds: “The normal seasonal trends you’d see in Q3 were taken to their extremes this year. August and September are always peak lettings season, but this year, August saw the highest level of demand ever recorded, and average rent broke records in September at £553.
“Now that we’re past the peak, renter demand should relax as it does in Q4, but I suspect it’ll remain significantly higher than we’d typically see for October. The lack of supply is still making headlines, as September’s 23,000 new listings was the lowest level yet in 2022. From a Build to Rent perspective, there will be an influx of stock in the new year, however, we’ve already got renters registered now looking for their next home."
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Not too bad 😬😬 about to get a whole lot worse 😰😰…. No one cares, the PRS is shouting at the wind, there is no organisation or group who give a toss, we all have to make decisions based on what is best for our families, I am out because I see no future for the small landlord, the attacks will not stop.
I have a 4 bed terrace that was returning £2400PCM which i’m selling. The letting agent called me in September with an offer of £3000PCM and another called me from the sales board with a £3300 offer 2 weeks ago.
In rent freeze Scotland 900 are chasing a single flat and begging Landlords to adopt a sealed bid approach.
A great template for others to follow (btw Scotland is part of the UK, not a nation).
Only 29? I get a lot more than that when I advertise (nowhere near London mind you)
I had about 180 applications last time I advertised- and so if you count the tenants involved then that was about 300 for a one bedroom flat in London.
I would have had more but Open Rent took my advert down when it reached a 100 (in a day or so). I had it on another website so that is why I had another 80 applications.
We get loads apply in Norwich, but by the time we have worked through the no hopers and the chancers there are normally 5 - 6 good honest working people to choose from
I had the same experience, Andrew.
I also had so many apicants for 3 bedroom house in Hull. I told estate agents to stop advertising it when I reached 30 on second day it was advertised. At least 23 good potential tenants, I would have been happy with. I predict the figure will treble or quadriple if Renters Reform bill goes through. Many experienced LL will be lost.
I had 130 open reach accused us of data farming and refused to deal with us. We had some serious con artists applying, including one young male homosexual who wanted to come and live their with his friend. Unfortunately he didn't seem to have a job, but an uncle ran a bowling alley and would give him a reference etc etc. It got stranger and stranger and he, a white male turned up with a young afro carribran woman for support. She seemed to have had some problem with goodlord. Although l took them at face value l now think it was some sort of set up, maybe a race relation claim or gay rights etc. However he had ccjs and no apparent income, his male friend was a young tyre fitter and had not been employed for too long. And that's just one of them !
Unemployed and CCJs, well that's a big fat NO straight away, got a nerve even applying.
Andrew he posed as working for his uncle part time and could increase the hours, but it turned into a saga as explained. It took a lot of probing to flush him out, nothing was quite right. Further getting references etc became time consuming and their were two young males. ccjs were at a previous address. Unfortunately a lot of people have ccjs, criminal records etc.
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