New data from Foxtons highlights steady growth in the London lettings market throughout 2024, with new market listings increasing by 8% year-on-year, reaching over 385,000. December 2024 alone recorded 7% more listings compared to December 2023, reflecting strengthened supply levels across the capital.
Demand saw mixed trends during the year. While the first half of 2024 experienced a 6% decline in applicant demand compared to 2023, the second half showed a 1% increase, resulting in an overall 3% decline for the year. Central London led the recovery, reporting a 15% rise in demand, whereas West London saw a notable 19% reduction, indicating shifting renter preferences.
Gareth Atkins, managing director of lettings at Foxtons, said: “Looking at the rental landscape in the year ahead, I expect to see traditional seasonality in the market, similar to 2024. Whilst we’re projecting modest rent growth of 3-5%, the real story will lie in the resilience of supply levels. This will be tested, primarily, by the approaching Renters’ Rights Bill, which should come into effect by the second half of the year.”
Despite concerns over landlord exits from the market, Foxtons’ data indicates that rental supply remained robust. Many regions posted double-digit supply increases, with East London recording the highest growth at 18%. South London topped the list for renter demand, with an average of 19 renters per instruction by year-end, followed closely by East London at 18 renters per instruction.
Applicant budgets rose by 2% in 2024, with South London seeing the highest increase from £493 to £507 per week, a 3% rise. Average rents closely mirrored those of 2023, with a marginal 2% decline to £569 per week.
As the year ended, December 2024 recorded a slight 1% month-on-month drop in renter spending. Overall, renter spend for the year decreased by an average of 1% compared to 2023, despite the resilience in supply and applicant demand.
Foxtons’ key market indicators for 2024 show a 9% increase in new instructions across London, with East London seeing the largest rise at 18%. Meanwhile, renter registrations declined by 3% overall, with regional variations such as a 15% increase in Central London and a 19% fall in West London.
