"Encouragingly, last year’s data did not see drops in available rental supply, even as some landlords took advantage of an increase in sales to evaluate lower-performing assets in their portfolios"
- Gareth Atkins - Foxtons
The lettings market ended December 2024 on a strong note, with 7% more new listings compared to the same month a year earlier. For the year overall, new market listings rose by 8%, totalling over 385,000 listings throughout 2024.
Demand increased by 6% in December 2024 compared to the previous year. Overall, 2024 experienced a marginal 3% decline in applicant demand compared to 2023, with the first half of the year 6% behind and the second half recovering to be 1% ahead. Central London exhibited a significant 15% increase in demand compared last year to 2023, whereas West London recorded a 19% reduction, reflecting shifting preferences across the capital.
Reflecting on 2024, London’s Lettings market saw the return of typical seasonal patterns, with steady growth in supply across all regions. Many regions saw double-digit growth, while East London led the way with the largest supply increase.
Interestingly, renter behaviour reflected evolving preferences: demand increased in Central and East London, while West and South London saw more moderate attention. This indicates renters' decisions are influenced by more than price considerations. Going forward, affordability will likely continue driving the market, with renters’ preferences adapting to availability and competition.
December 2024 saw a 30% month-on-month increase in new renters per new instruction, rising to 15. Additionally, December 2024 was stronger than December 2023, with a 7% uptick. By the end of 2024, South London had recorded the highest average of 19 renters per instruction, followed closely by East London with 18 renters per instruction.
Applicant budgets increased 2% in 2024; South London experienced the most significant growth, with average budgets increasing from £493 to £507 per week, a 3% rise.
The average rent in 2024 closely mirrored that of 2023, with a marginal 2% decrease to £569.
As renter demand decreased towards the end of the year, December 2024 recorded a 1% drop in renter spending compared to November. Overall, 2024 saw renter spending dip by an average of 1% compared to 2023.
“Looking at the rental landscape in the year ahead, I expect to see traditional seasonality in the market, similar to 2024," said Gareth Atkins, Foxtons' managing director of lettings.
He concluded, "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 the Renters' Rights Bill, which should come into effect by the second half of the year. Encouragingly, last year’s data did not see drops in available rental supply, even as some landlords took advantage of an increase in sales to evaluate lower-performing assets in their portfolios.”
