Foxtons, London’s leading lettings and sales agent, noted a modest 9% increase in demand from February to March 2024, despite a 14% decrease compared to the same period last year.
This shift signals a stabilisation in the market, complemented by a 15% rise in new instructions over the first quarter of 2023. South London saw the highest demand among the regions, notably exceeding that of Central London.
The average number of new renters per instruction in March was 14, showing a slight improvement from February. East London experienced the most substantial increase, with a 23% rise in new renters per instruction.
Despite the overall drop in year-on-year demand, rental budgets have risen by 3% in 2024 compared to 2023, with Central London maintaining the highest average at £579, up 2% from last year.
The surge in new instructions seen at the start of the year slowed in March, with only a 2% increase compared to the previous year.
The average rent achieved across London slightly declined by 1% year on year, with variations across regions—North and West London saw increases, while Central London saw a decrease.
Gareth Atkins, managing director of lettings at Foxtons, commented on the market conditions: “Inflation has dipped to its lowest point in two and a half years, with interest rates expected to follow. This should encourage buy-to-let landlords as we move into Q2.
“Additionally, sales stock is at its highest in eight years, which could deter landlords from selling. As we approach the busy summer period, we expect recruitment drives in London’s companies to boost lettings activity. However, average rent prices are likely to stay flat due to affordability pressures, helping more renters secure homes in the capital.”
Richard Merrett, managing director of Alexander Hall, also noted improvements in the mortgage market: “With the Base Rate stable and less volatility in Q1, we’ve seen positive developments in the mortgage market.
“The largest buy-to-let lenders have reduced rates, Coventry and Skipton have enhanced affordability assessments, and a major mutual has introduced a Limited Company BTL proposition.”
