Tenant demand in London increased 12% in April compared to March – the first time this year that applicant demand has risen month on month and a sign the market dynamic is shifting, latest data from Foxtons reveals.
Its Lettings Market Index shows sentiment may be improving across London despite a 10% fall compared to last year with April seeing a 6% increase in demand.
Alongside the improved sentiment, the seasonal upturn in the lettings market also contributed to higher demand from tenants after an increase of supply in the first quarter slowed competition.
So far this year new renters per new instruction has remained constant at an average of 14 – 22% down compared to 2023.
South and West London showed the highest number of new renters per new instructions with an average of 19 and 18 respectively.
INFLUX
Gareth Atkins, FoxtonsGareth Atkins, Managing Director of Lettings at Foxtons, says: “The first quarter of 2024 saw a significant influx of new properties compared with 2023 and as such, less renters per property – or in broad terms, competition.
“One of the knock-on effects of that was a stagnation of average prices, which we predicted in January. Early data from Quarter 2 has seen not only that supply slowed but also the return of 2023 levels of applicants which, if it continues, would indicate a stronger rental market.”
SPRING HAS SPRUNG
Sarah Tonkinson, FoxtonsSarah Tonkinson, Managing Director of Institutional PRS and Built to Rent at Foxtons, adds: “The spring market has definitely sprung into action, and registrations for Build to Rent are coming in thick and fast.
“Foxtons’ Build to Rent portfolio is already seeing a significant increase in under offer and exchanged leases compared to the same period last year. This time of year applicants commerce their searches in earnest buoyed by the lighter evenings and better weather. Students want to secure a lease for September before they leave for summer.”
