Applicant demand in May saw a month-on-month increase of 20% compared to April.
An increase in property listings is helping to create a more normalised market which is a welcome relief to renters, landlords and agents alike, new data from Foxtons shows.
In May, there was notably more properties coming to market than in the previous two years, reducing competition. Data shows there was also an increase in applicant demand, in line with seasonal norms. However, it is slightly lower than in previous years because renters have more choice and less competition for properties, meaning there is less need to register with multiple agents.
May saw an increase of 36% in listings compared to April. And for the year to date, listings in 2024 are 10% higher than 2023. Over 20% of new instructions year to date were within Westminster and Tower Hamlets, with Westminster having 11% of new instructions alone.
With a larger number of new instructions entering the market so far in 2024, there was a 21% reduction in new renters per instruction, despite the increase in applicant demand. On the cusp of peak lettings season, Foxtons saw a 5% increase month on month in May, with East London increasing 26% month on month.
As a result of less competition per property, average rent was slightly behind May 2023. Average Rent was £577 per week in May 2024, slightly behind the £606 average in May 2023. There was a marginal 2% decrease in rent year to date compared to 2023.
Gareth Atkins, Managing Director of Lettings at Foxtons, said: “As we move into peak summer lettings season, supply is growing. Renter demand is also growing, mirroring 2023's Q2 trends with a 20% month-on-month increase. If demand follows last year’s trends through summer, Q3 will be a very busy market.
"The announcement of the general election at the same time has resulted in the shelving of the Renters Reform Bill. This means there will be no immediate changes to fixed-term tenancies or any of the other provisions within the bill. Renters Reform is likely to be reintroduced under a new government but for now, it’s business as usual.”