London has seen a huge surge in the number of renters looking for a property this summer, according a leading estate agency.

Figures from Chestertons show a 22% month-on-month increase in tenants making an offer on a property in July, and a 7% increase in inquiries.

Recent research from Rightmove confirmed that each rental property is receiving 17 inquiries, while the number of available rental properties is still 20% below pre-pandemic levels.

The portal also said that London rents have risen to a new record of £2,661, and are now 4% higher than last year (£2,567 per calendar month).

Additional demand

Chestertons’ Head of Lettings, Adam Jennings (main image), explained that July to September is always peak season for London’s lettings market, driven by an influx of students and corporate tenants, as well as renters whose previous tenancy agreement is up for renewal.

“This year, we are seeing additional demand from aspiring homebuyers who, despite mortgage rates starting to fall, continue to rent,” he said.

Despite widespread concern about the crackdown on landlords, Chestertons registered a 14% uplift in the number of new letting instructions.

However, Jennings warned: “Whilst this will result in a larger pool of available properties to choose from, the volume of tenant enquiries will remain greater, with one property attracting numerous offers.”

Average UK rent 5.7% up on 2023

Meanwhile new figures from Savills show the average rent on a newly let property rose to £1,354 per calendar month in July, a 5.7% increase from the previous year.

Rents in Northern England are rising three times faster than in London, with a 10.3% annual increase compared to London’s 3.0%.

Rental growth continues to outpace inflation, despite the pace of growth moderating over the last year.

There are signs that the annual increases in stock levels since 2023 are beginning to subside. In January, stock levels were up 34% year on year, a figure which has now fallen to 22%.