Foxtons has observed a notable increase in the property market with new lettings instructions up by 25% in January 2024 compared to the same period in 2023.
This rise in listings is accompanied by a modest 1% reduction in rental prices year-on-year, attributed to the growing supply.
The lettings market experienced a significant 93% month-on-month increase in applicant demand from December to January, a typical seasonal trend.
Despite this, demand in January 2024 was 10% lower than in January 2023. Compared to January 2019, considered the last traditional market year, applicant demand in January 2024 saw a substantial increase of 71%.
London witnessed a 65% jump in new instructions in January 2024 from December 2023. Despite the slight decrease in rental prices, central London continues to demand the highest average rent at £627, showcasing its prime rental status, with the overall average rent in London starting the year at £544.
Gareth Atkins, managing director of lettings at Foxtons, said: “As forecasted, the start of 2024 has seen a more normalised lettings market, and as new properties come to the market, it will be important for landlords to keep track of how that effects their asset.
“The London lettings market can move quickly and be very localised, so a good agent providing timely market analysis and adjusting the strategies accordingly will help to attract the right qualified tenants.”
Sarah Tonkinson, managing director of institutional PRS and Build to Rent at Foxtons, added: “We are not expecting massive price growth across London’s lettings market this year, around 0 and 2%.
“The market is still competitive; January 2024 had 56% more applicants per new instruction than in 2019 – which we consider to be the last year that there was a more normalised lettings market.
“So while there is opportunity, landlords may need to take a more active approach to pricing and work with agents to place tenants and minimise void periods.”
