Figures from the latest Foxtons’ Letting Market Index show that average weekly rent in the capital in July 2023 was 12% higher than July 2022.
Analysis of London data also showed a 6% increase in new listings compared to the previous year.
Average weekly rent remained stable in July at £597 per week, which was only slightly lower than the £599 per week recorded in June, but 12% higher than July 2022.
Central London continued to command the highest average weekly rent, at almost £680. When comparing 2023 to 2022 year to date, the average weekly rent across London increased 12%, with East London increasing 15%.
In July London saw 7% more instructions than in June, which translates into roughly 2,500 more instructions, and new listings were up 6% when compared to July 2022.
Applicant demand increased 13% from June, as July brought London into peak lettings season. When compared to 2022, July demand was lower, with a 4% decrease year to date and a decline of 15% versus last July.
There was an average of 21 rental applicants per new instruction in July, an 18% increase month-on-month, however a 12% decrease when compared to 2022.
East London saw a 63% increase rising to 26 applicants per instruction, becoming the second highest after South London which has an average of 30 applicants per instruction in July.
Gareth Atkins, Managing Director of Lettings, said:
“As our market research predicted at the start of 2023, price increases in the lettings market are less extreme than we saw last year.
“We’ve seen expected growth and are now into a more consistent busy market we normally see at this time of year. As such, the market will remain highly competitive through summer.”
