New figures today from Foxtons, London’s leading lettings agent, show that average weekly rent in July 2023 was 12% higher than July 2022. Foxtons analysis of London data saw a 6% increase in new listings compared to the previous year.
Average weekly rent remained stable in July at £597 per week, which was only slightly lower than the £599 per week recorded in June, but 12% higher than July 2022.
Central London continued to command the highest average weekly rent, at almost £680. When comparing 2023 to 2022 year to date, the average weekly rent across London increased 12%, with East London increasing 15%.
In July London saw 7% more instructions than in June, which translates into roughly 2,500 more instructions, and new listings were up 6% when compared to July 2022.
Foxtons’ data found that that applicant demand increased 13% from June, as July brought London into peak lettings season. When compared to 2022, July demand was lower, with a 4% decrease year to date and a decline of 15% versus last July.
In July, Foxtons saw an average of 21 rental applicants per new instruction, an 18% increase month-on-month, however a 12% decrease when compared to 2022. East London saw a 63% increase rising to 26 applicants per instruction, becoming the second highest after South London which has an average of 30 applicants per instruction in July.
Rental applicant budgets have held a 2% increase month-on-month since April, and this trend was consistent through July. Foxtons data reveals that budgets have, so far, been higher than previous years with a 7% increase from 2022 year to date.
The average percentage of rental spend in July remained at 99%, which was 2% higher than 2022 year-to-date. Central London was the only region where renters were, on average, spending higher than their budgets, with the average sitting at 102%. Of all rental deals over budget year-to-date, 36% of them were in Central London.
Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent, said, “July’s market experienced a rise in activity that always comes with peak lettings season; demand increased 13%.
“This period always sees a flurry of activity as families move to London, new graduates head for London workplaces and the student population make plans for the coming academic year.
“The good news for renters is that there is 6% more stock available compared this this time last year, but competition is still fierce for quality properties and allowing enough time for your search is still key!”
Gareth Atkins, Managing Director of Lettings added, “As our market research predicted at the start of 2023, price increases in the lettings market are less extreme than we saw last year.
“We’ve seen expected growth and are now into a more consistent busy market we normally see at this time of year. As such, the market will remain highly competitive through summer. This July, as the seasonal rush began, there was an average of 21 renters registering per each new instruction in London.”