September signals the close of a highly active season for the London lettings market.
Foxtons’ latest data has revealed that applicant demand has slowed as expected, while year-to-date certain areas such as Central London continue to show strength, particularly in new renters per instruction. New listings rose in September, compared to the same month in 2023.
Applicant demand in September reduced in line with expectations as the peak lettings season came to an end. Demand decreased by 35% in September compared to August. Overall, year-on-year applicant demand was 3% down, however, certain regions of London such as Central and North have seen higher demand year to date in 2024 than in 2023.
As the lettings market cooled, there was a decrease in new renters per new instruction month-on-month, with an average of 16 new renters per new instruction in September.
However, this trend was not reflected in Central London which saw an increase of 12% year-on-year in applicants per new instruction, rising from 11 to 13.
Applicant budgets remained 2% higher year-on-year in September, higher than any other year at an average of £543. South London had the highest increase in applicant budgets, rising 7% year to date, to sit at £492. Meanwhile, rent saw a slight increase of 2% month-on-month, reaching £594 in September. 1-bed flats have shown the highest increase in rent year-to-date at 5% whilst 3-bed flats have seen a 3% increase.
New instructions were up 8% year on year in August, with a 6% decrease month on month. This September, new market listings increased 12% from September 2023, signifying good opportunities for renters.
Gareth Atkins, Managing Director of Lettings, said: "As the rental market begins to stabilise ahead of the winter months, we’re seeing key regional trends shaping the landscape. While overall demand in London saw a seasonal decline in September, due to longer tenancy timelines, areas like Central London saw a 12% increase in applicants per new instruction.”
