New figures from Foxtons today show that rental prices in the Capital have reached record highs, as rising interest rates and lack of supply put pressure on rental prices.

 In October, rental prices reached a new record high of £571 per week, exceeding the previous high of £553 per week in September 2022. This is a 4% uplift in comparison to September, which would typically be the peak for the lettings market.

INCREASE

Central London continued producing the highest average weekly rent this year at £643 per week, a 29% increase on prices seen in October 2021.

In October, demand for properties in London followed the usual seasonal downward trend, with a 38% reduction in renter registrations from September 2022 to October 2022.

The average weekly renter budget in October 2022 was £485, which is over £20 more than the average budget in October 2021. Year to date, budgets are 7% higher compared to 2021.

SPENDING

For the second month in a row in 2022, Foxtons saw renters spending over their budgets to secure a property. In October 2022, renters spent 101% of their registered budget, a 3% increase compared to October 2021.

Gareth Atkins, Managing Director – Lettings, says: “Competition for London lettings is intense. Average rent prices have reached a new record at £571 per week, and we’re seeing a return to renters spending over their registered budget at 101% on average.

October saw the lowest monthly volume for new listings year to date.”

“October saw the lowest monthly volume for new listings year to date.

“With rapidly expanding government regulations and the highest single lift in interest rates the UK has seen in years, landlords have a lot more to factor into their business plans going forward.”

Sarah Tonkinson, Managing Director – Institutional PRS and Build to Rent, adds: “This October’s £571 average rent prices actually surpassed September’s record high, which is a huge departure from the normal trend.”