The average rent rose by 3% in February, averaging at approximately £561 per calendar month (pcm), new data from the Foxtons’ Lettings Index has revealed.
In addition, despite being 10% lower than January 2024, the number of new instructions was 19% up when compared to the same period in 2023.
Applicant demand in February 2024 decreased by 15%, indicating a more moderate market than last year.
While South London continued to be the most in demand area, it also saw the largest decline in applicants, 21% lower than the same period 2023.
West London was the only region that saw a year-on-year increase, rising from an average of £459 in 2023 to £487 in 2024.
The number of new renters per new instruction in London remained stable since October 2023, remaining between 12 and 14 applicants per instruction.
The year-on-year decrease of 29% indicated a shift in market dynamics as demand reduced and supply increased.
Gareth Atkins, managing director of lettings at Foxtons, said: “The London lettings market is adjusting as we predicted, with applicant demand down 15% and listings up 20% compared to February last year.
“Landlords must adapt, as simply listing their property is no longer enough to achieve a good return.
“Though applicant numbers remain higher than 2019, we are conducting 23% more viewings in order to secure tenancies.
“Building a competitive pricing strategy and instructing a proactive agent are crucial for a landlord’s success in this evolving market.”
Sarah Tonkinson, managing director of institutional PRS and Build to Rent at Foxtons, added: “South London had the highest demand, Central London had the highest budgets and West London was the only region to see a year-on-year increase in average price this February.
“Dig deeper, and you’ll find even greater differences within each region. Landlords can set their listings apart by understanding and adapting to nuances in their local market.
“That’s why we leverage real-time data and analytics to optimise our clients strategies, keeping landlords competitive within micro-markets.”
