Average rental prices in London reached a new record high of £571 per week in October, breaking the previous record of £553 per week in September 2022, the latest Foxtons Letting Market Index reveals.
Central London rental prices are now 29% higher than in October 2021, with an average weekly rent of £643 per week.
There were 22,000 new listings in October 2022, the lowest monthly volumes so far this year
In October, renters spent 101% of their registered budget, the second month in a row renter spend reached pre-pandemic levels.
Meanwhile, there were 22 renters competing for every new property in October 2022 which is higher than any October Foxtons recorded in 2021, 2020, or 2019.
Gareth Atkins, managing director – Lettings at Foxtons, said: “Throughout our front offices and within our renewals team, October has proved to be a very busy month.
“Competition for London lettings is intense. Average rent prices have reached a new record at £571 per week, and we’re seeing a return to renters spending over their registered budget at 101% on average (a number we haven’t seen since before the pandemic).
“One reason for the competition is the rising interest rates, as renters who were considering homeownership are now looking to renew or find their next rental. Another reason is the sheer lack of supply.
“October saw the lowest monthly volume for new listings year to date. With rapidly expanding government regulations and the highest single lift in interest rates the UK has seen in years, landlords have a lot more to factor into their business plans going forward, so we’re likely to see these unusual trends continue further into Q4.”
Sarah Tonkinson, managing director – institutional PRS and Build to Rent at Foxtons, added: “The lettings market usually follows a set pattern with August and September as the busiest months of the year, followed by a quiet Q4.
“However, this October’s £571 average rent prices actually surpassed September’s record high, which is a huge departure from the normal trend.
“Typically, Londoners don’t want to move house around the holidays, and we often help negotiate different tenancy lengths between landlords and tenants, like 15 months instead of 12, to avoid properties coming on the market this time of year.
“Instead, there were 22 applicants per new listing last month, which is higher competition in October than we’ve seen even pre-pandemic in 2019.
“We mentioned, in previous Lettings Market reports, that this might be an unusually busy Q4, and so far, it’s turning out to be absolutely true.”
