Demand for London rentals hits a record high, creating a golden opportunity for landlords. Here’s the inside scoop on the latest trends and why NOW is the time to cash in!

The London rental market is red hot, with tenant demand reaching record highs in August. According to new data from Foxtons, a leading London estate agent, there were a staggering 40,000 prospective tenants looking for properties in August, matching the peak seen in July.

Central London Leads the Charge

Central London is experiencing a particularly strong surge in demand, with applicant registrations up by 15% compared to the same time last year. East and North London are also seeing increased demand compared to 2023, despite an overall 4% drop in demand across all of London.

Renters Facing Stiff Competition

On average, there were a remarkable 23 prospective tenants for every new rental property listed in August, a significant 23% increase compared to July. Bromley saw the highest levels of competition, highlighting the intense demand across the capital.

Renters Willing to Pay Top Dollar

With competition fierce, renters are digging deep into their pockets. On average, tenants are spending almost their entire budget to secure a tenancy, demonstrating the strong desire to live in London. Applicant budgets are up 2% compared to last year, with one-bed flats seeing the biggest increase at 5%, reaching an average of £472 per month.

More Properties Coming Onto the Market – But Act Fast!

The good news for landlords is that the number of new properties entering the London rental market is up 7% compared to August last year. Westminster and Tower Hamlets are leading the way, with over 20% of all new rental instructions coming from these two boroughs. However, there was a 13% decrease in new instructions month-on-month, so don’t delay!

Rent Prices Remain Stable

While demand is soaring, rent prices have remained relatively stable in 2024, with no change between July and August. Rents are currently 2% lower than the same period in 2023, with South London rents remaining static year-on-year and other areas experiencing slight decreases.

Landlords: Seize the Opportunity!

Gareth Atkins, Managing Director of Lettings at Foxtons, urges landlords to take advantage of the current market conditions: “July and August were the busiest months this year, as you’d expect, with August seeing a remarkable 23% month-on-month increase in renters per new instruction. As we approach the fourth quarter, which is usually a quieter period, landlords should make the most of this month’s market activity to secure quality tenants. This month goes remarkably fast, and strategic marketing now could make a significant difference over the next year.”