Rents Increase by 12% in London - Foxton’s Market Index
Published by Magnate Assets on
Aug 14, 2023
Recent data from the latest Foxtons’ Letting Market Index underscores that the average weekly rent in the capital during July 2023 exhibited a 12% upswing in comparison to July 2022.
Thorough analysis of London's statistics further illuminates a 6% rise in new property listings compared to the previous year.
Throughout July, the average weekly rent maintained its stability at £597 per week, showcasing only a slight dip from June's £599 per week, yet manifesting a noteworthy 12% elevation from the corresponding period in 2022.
Standing out, Central London steadfastly commanded the pinnacle of average weekly rent, nearing the £680 mark. On a year-to-date comparison between 2023 and 2022, the average weekly rent across London exhibited a commendable 12% surge, with East London witnessing a particularly remarkable 15% escalation.
July witnessed a commendable 7% surge in instructions in comparison to June, which translates to approximately 2,500 additional instructions. Furthermore, new listings experienced a 6% boost when contrasted with the data from July 2022.
As the peak lettings season enveloped London in July, applicant demand burgeoned by 13% from June. However, in a broader context of 2022 comparison, July's demand dipped by 4% year-to-date, with a more substantial 15% decline in comparison to the previous July.
Intriguingly, an average of 21 rental applicants per new instruction was observed in July, marking an 18% monthly increase, although it reflects a 12% retreat compared to the previous year's data. Notably, East London displayed a striking 63% surge, elevating the average to 26 applicants per instruction, second only to South London, which retained the lead with an average of 30 applicants per instruction in July.
Gareth Atkins, the Managing Director of Lettings, highlighted, "Our initial market projections for 2023 anticipated more moderate increases in the lettings market compared to the previous year. We're observing anticipated growth, entering a phase of consistent market activity typically seen at this juncture. Consequently, the market's competitiveness will persistently thrive throughout the summer season."