London Slowdown – more figures show cooling demand in the capital

Published on 18th October 2024, 7:10am

Foxtons’ September data shows that London applicant demand has slowed, as expected, in line with expectations as the peak lettings season came to an end. 

Demand decreased 35% in September compared to August. Overall, year-on-year applicant demand was 3% down, however certain regions of London such as Central and North have seen higher demand year to date in 2024 than in 2023.

As the lettings market cooled, there was a decrease in new renters per new instruction month-on-month, with an average of 16 new renters per new instruction in September. 

However, this trend was not reflected in Central London which saw an increase of 12% year-on-year in applicants per new instruction, rising from 11 to 13 year to date.

Applicant budgets remained 2% higher year-on-year in September, higher than any other year at an average of £543. South London had the highest increase in applicant budgets, rising 7% year to date, to sit at £492. Meanwhile, rent saw a slight increase of 2% month-on-month, reaching £594 in September. 1 bed flats have showed the highest increase in rent year-to-date at 5% whilst 3 bed flats have seen a 3% increase.

New instructions were up 8% year on year in August, with a 6% decrease month on month. This September, new market listings increased 12% from September 2023, signifying good opportunities for renters.

Gareth Atkins, managing director of lettings, says: “As the rental market begins to stabilise ahead of the winter months, we’re seeing key regional trends shaping the landscape. While overall demand in London saw a seasonal decline in September, due to longer tenancy timelines, areas like Central London saw a 12% increase in applicants per new instruction.”

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