A Foxtons letting sign outside a property in London
(Picture: SIPA USA/PA Images)Londontenants were today warned that there is no sign of any easing in the red hot rental market “in the coming months” as new listings fell 40% over the year.
The capital’s biggest agency chain Foxtons said supply and demand remain hugely out of kilter with 28 renters competing for every new property, forcing up prices. In east London, a traditional rental hotspot for professionals, the competition increased to 38 renters per property.
Across London average prices remained close to all time highs in July with rents up 23% on last year.
According to Foxtons data south London was the most desirable area with 40% more registrations compared to the same period in 2021. Central London had the highest average weekly rent at £627, a 33% increase on 2021.
Foxtons managing director Sarah Tonkinson said: “Rent is making headlines in the Capital. Putting aside renewals, which are reflected in the ONS data, London’s average rental price for new rents was £541 per week in July, hot on the heels of June’s £549, which broke the record as highest monthly rental price in years. This is due to high demand and low supply – aggregators have had 40% fewer new listings year to date.
“As low stock and high demand are likely to continue for some time, we do not see average rental prices declining significantly in the coming months.”
Separate research from RentTech company Goodlord showed London rents have risen 10 per cent over the past year - including 3% in a month - to an average of £1798.
Tom Mundy co-founder of Goodlord said: “As UK inflation hits a 40-year high, we’re seeing more tenants in London impacted by dramatic increases to their rents than ever before. With the energy price cap due to be raised again in October, the rising cost of bills is expected to add significantly to the financial pressure UK households are facing. At the same time, many landlords may be planning to leave the rental market due to the uncertainty surrounding possible rental reforms.”
