As we wrapped up December, there was a 24% drop in the number of people looking to rent, which is quite typical for that time of year. This wasn’t just a one-off – throughout 2023, there was a 12% dip in rental demand compared to 2022. The real change started in July, marking a return to what we might call ‘business as usual’ in the rental world.

A More Balanced Market

The number of potential renters per available property has fallen by 22% compared to last year. This is a clear sign that the rental market is finding its feet again. It’s all about balance – more properties available, but stable interest from renters. Although this trend is happening all over London, some areas are hotter than others. South London is seeing about 24 renters per property, while West and East London aren’t far behind with 23 and 22 respectively.

Stock Levels on the Rise

The second half of 2023 was a game-changer for the rental market, thanks to a surge in available properties. September and October were particularly strong, showing a 29% and 37% increase in stock compared to 2022. Even in December, we saw a 22% jump from the previous year. Overall, 2023 had 13% more rental properties on the market than in 2022. And guess what? This trend looks set to continue well into the first half of 2024.

Industry Insights

Gareth Atkins, the MD of Lettings at Foxtons, has his eye on the future. He believes that 2024 will bring us back to the kind of market we haven’t seen since before 2020 – more predictable, with ups and downs in spring and summer and a steady pace towards the end of the year. Even with the General Election looming, he’s expecting a smoother ride for both renters and landlords.

Sarah Tonkinson, overseeing institutional PRS and Build to Rent at Foxton’s, is feeling positive about the start of 2024. She thinks the market is the most balanced it’s been in years, setting the stage for a crucial year in London’s rental scene.