Lettings Report - Lettings Market Report December 2022

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As the final report of 2022, we can reflect on a record-breaking year for the London rental property

market. Average rent prices climbed steadily throughout the year, finishing an astonishing 20% higher

than in 2021. They were driven up by a perfect storm of macroeconomics, which resulted in almost a

third fewer properties available to let than the previous year. At the same time, renters had been

returning to London in droves - both domestic and overseas demand increased through the year -

intensifying competition for the few available properties and reaffirming London's global appeal.

· Using industry data, we found that new listings in December dropped below 20,000.

Because it is the seasonal trend, it should not have been surprising that this was lowest

point for the whole year, except that this was also the lowest point of any month within

the last four years.

· High demand remained a key factor throughout the 2022 market, and overall, it

remained 14% higher than in 2021. Month on month, demand fell 27% in December,

which is expected around the holidays.

· At £551, December's average weekly rental price remained flat with November.

However, hovering just below the record-breaking prices in previous months, this

average rent breaks records for end-of-the-year prices.

Foxtons Lettings Market Report

Foxtons - Lettings Market

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"Competition was higher this December than usual, 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. Looking forward, 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."

~ Gareth Atkins, Managing Director of Lettings

"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 still remains high and I do not see a great glut

in stock on the horizon - that just doesn't happen in London.

I'm optimistic for anyone who has a rental investment and for residents with security of

tenure. As London's overall demand grows ever higher, renters coming to the market must be

savvy, prepared and persistent, talk to agents, give themselves more time to search."

~ Sarah Tonkinson, Managing Director of Institutional PRS and Built to Rent

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+44 (0)7773 816 498

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+44 (0)20 7766 1230