October lettings figures show supply gains and firmer pricing
London's private rental sector demonstrated resilience in October despite a predictable contraction in tenant enquiries, according to figures released by letting agency Foxtons.
New property listings retreated by 7% from September, yet remained higher than October 2024, with year-to-date accumulation showing a 10% rise in supply compared with the previous year.
Tenant applications contracted by one-third during October relative to the previous month, reflecting the customary slowdown preceding the winter holiday period. On an annual basis, applicant volumes continued to trail 2024 levels by 7%, with reductions concentrated in London's South and West regions. Despite the softer demand environment, underlying tenant requirements remained robust, underpinning the market's continued vitality.
Rental pricing moderated by 3% in October, settling at £575 weekly. This modest decline mirrors typical patterns observed in previous years during the same month. However, annual comparisons reveal a different trajectory: rents have increased by 2% since 2024 across all London zones except the North, demonstrating the market's capacity to maintain upward pricing momentum.
Competition between prospective tenants diminished markedly, declining 28.9% during the month. The ratio of applicants per available property narrowed from approximately 20 contenders in August to nine by October, potentially affording renters greater negotiating scope and expanded choice.
Tenant expenditure remained consistent, with renters committing an average of 99% of their stated budgets to accommodation. Approximately 63% of successful renters procured properties beneath their budgeted threshold, whereas 30% exceeded their initial spending parameters.
This indicates a moderately competitive environment where most tenants can access suitable properties within financial constraints, though a substantial minority maintain premium positioning.
"October saw a seasonal slowdown in demand, but the London lettings market remains resilient," said Gareth Atkins (pictured right), managing director of lettings at Foxtons.
"The recent Royal Assent of the Renters' Rights Act is a significant milestone, and with Phase 1 implementation confirmed for May 1, 2025, landlords should prepare for upcoming changes by working with a London lettings expert to get the right price for their rental property.
"Despite easing competition, rental values have held firm, supported by strong applicant budgets and improved supply. These trends underline the continued strength of London's rental sector and its ability to deliver returns for landlords, even in a shifting regulatory landscape."
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