London Rental Market Still Strong Despite Seasonal Dip

Despite the usual summer rush cooling off, London’s rental market is still looking strong.

According to the latest figures from property experts Foxtons, while the peak lettings season might be over, there are still plenty of opportunities out there, particularly in Central London.

Here’s the summary:

Demand:

As expected, the number of eager renters looking for properties dropped in September compared to August (down 35%). This is normal as the summer frenzy dies down.
However, don’t panic! Over the whole year, demand from renters is only down by a tiny 3%.
Even better, some areas are absolutely booming. Central and North London are actually seeing higher demand in 2024 compared to the same time last year.

Competition:

Across London, the average property on the market is attracting 16 potential renters each.
But in Central London, things are even hotter! Properties in this sought-after area are now pulling in an average of 13 applicants each – that’s a hefty 12% jump compared to last year.

Rents and Budgets:

Across the capital, the average renter is willing to fork out £543 per month – that’s 2% higher than this time last year!
South London is a goldmine for landlords, with average renter budgets there skyrocketing by 7% to reach a whopping £492 per month.
And the good news keeps coming! The average rent across London crept up by 2% last month, reaching £594.
One-bedroom flats are where the real money’s at. Rents for these pint-sized pads have rocketed by 5% over the past year. Three-bed flats are bringing in a respectable 3% more than last year too.

New Properties Coming Onto the Market:

September saw a welcome 12% increase in the number of new properties hitting the rental market compared to the same month last year. This means more choice for renters and more opportunities for savvy landlords.

Expert Opinion:

Gareth Atkins, at Foxtons Lettings, reckons things are looking good for landlords. He says, “While things always calm down a bit after the summer, certain parts of London are still red hot. Central London is particularly strong, with loads of renters chasing every property.”