Demand for candidates in the London rental market remained strong in November, rising 1% higher compared to November 2023. This is reflected in the latest data from rental agent Foxtons, which shows that demand so far in 2024 has been very similar to 2023, and stayed within 3 months. % of the previous year.
However, there was significant variation in demand across London; Central London has seen a 15% increase in candidate demand so far in 2024, while West London has seen a 20% drop.
Foxtons reports that budgets have increased slowly throughout the year as expectations of increased competition and a scarcity of rental stock have not yet materialized or had any significant impact on the market.
While some landlords are exiting the market, there is an increasing number of listings offering renters more choice than in previous years. Average rental prices have remained stable in recent months and have even started to cool down. They are likely to remain stable through the first quarter of 2025.
The number of new tenants per new instruction in 2024 was 12% lower than in 2023 to date, with an average of 15 applicants per instruction at the end of November. This month showed similar numbers to October, with the average only dropping 2%. Central London has seen a 13% increase so far due to the increase in demand, while all other regions in London have seen significant declines.
The average rental price in November 2024 was £541 per week, down 5% month-on-month compared to October. Average rental prices were lower in November 2024 than in 2022 and 2023. Compared to 2023, there will be a 2% decrease in rental prices in 2024. House rents saw the biggest fall in 2024, down 5%, while one-bed apartments saw a 1% increase.
Commenting on the latest data, Foxtons rental director Gareth Atkins said: “Rental demand was stable and sustained in 2024, even as the number of properties increased – up to 7% higher than at the end of 2023 (so far) November. So while this market had more of the traditional seasonality than we’ve seen in recent years, it was still very competitive, with an average of 15 tenants per new listing year to date.
He added: “As we move into 2025, the lessons of 2024 are clear: success requires not just real estate, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”