PRS shock: London rents rocketed by 20% last year, says Foxtons

Average rental prices in the capital were 20% higher in 2022 than the year before and putting further strain on would-be homeowners, Foxtons has reported.

Rental prices climbed steadily throughout 2022, finishing the year 20% higher than in 2021 and demand also remained high, fishing the year 14% up.

UNSURPRISING

Perhaps unsurprisingly, for Foxtons new listings in December dropped below 20,000 to reach a four-year low.

And at £551, December’s average weekly rental price remained flat with November but broke records for end-of-year prices.

Gareth Atkins, Managing Director, Lettings, says: “Competition was higher than usual this December, with 18 renters per each new instruction – a 23% increase from November – so landlords saw more interest around their new listings than they’d typically expect to see this time of year.

“London is starting 2023 with comparable levels of rental demand and supply to 2022, which might indicate a similarly strong market to 2022’s first quarter.

“However, I suspect we’ll see the market rise more steadily than last year’s spikes, which is more akin to pre-pandemic seasonality.”

SUMMER

And Sarah Tonkinson, Managing Director, Institutional PRS and Build to Rent, adds: “Last summer, we published a London Report posing the question on whether we’re seeing a “new normal” emerge, and as I look at how the supply/demand imbalance intensified through the year, I believe the answer is yes.

“Demand remains high and I do not see a great glut of stock on the horizon – that doesn’t happen in London.

“As London’s overall demand grows ever higher, renters coming to the market must be savvy, prepared and persistent, talk to agents and give themselves more time to search.”