December’s lettings market in London saw a return to balance, characterised by a significant decrease in new renters and a rise in available properties, according to Foxtons Lettings Market Index for December.
This shift aligns with typical seasonal patterns, with December experiencing a 24% month-on-month decline in applicant demand.
Overall, demand in 2023 was 12% lower compared to 2022, indicating a return to more normalised market conditions.
The year witnessed a 22% year-on-year decrease in new renters per instruction, signaling a move towards a more stable market with increased stock and steady demand levels.
Although the number of renters per new instruction has decreased across London, South, West, and East London still see high figures, with 24, 23, and 22 renters per instruction, respectively.
The latter half of 2023 saw a notable rise in stock levels, with September and October showing increases of 29% and 37% compared to the previous year.
December also recorded a 22% increase over December 2022. As a result, overall stock in 2023 was 13% higher than in 2022, a trend expected to continue into the first half of 2024.
Gareth Atkins, managing director of lettings at Foxtons, said: “Our belief is that the 2024 London Lettings market will be a far more traditional market than we have seen since 2020.
“Our expectations are for volumes to rise with seasonality over spring and summer before plateauing in Q4, offering more predictability for renters and landlords despite the General Election on the horizon.”
Sarah Tonkinson, managing director of institutional PRS and Build to Rent at Foxtons, added: “Now in the first month of 2024, the market is certainly better balanced than we have seen in recent years. It makes a strong start to what should be a pivotal year in London lettings.”
