Lettings Report - Lettings Market Report

Foxtons Lettings Market Report

Foxtons - Lettings Market

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"It comes as no surprise that we have had an 18% increase in landlords opting for Foxtons

managed property services, because in the coming year, how you manage your rental

property will be paramount given tenants' expectations and the Renters' Rights Bill. The

need for a landlord to communicate effectively with their tenant, be on point with

compliance and respond immediately to maintenance issues has never been greater. "

~ Fran Giltinan, Managing Director of Property Management & Customer Experience

Reflecting on 2024, London's lettings market returned to predictable cycles, with steady growth in

supply across all regions. Many regions saw double-digit growth, while East London led the way

with the largest supply increase. Interestingly, renter behaviour reflected evolving preferences:

demand increased in Central and East London, while West and South London saw more moderate

attention. This indicated renters' decisions are influenced by more than price considerations. Going

forward, affordability will likely continue driving the market, with renters' preferences adapting to

availability and competition.

· In the first half of 2024, applicant demand was 6% behind 2023. In the second half of the

year, demand was 1% ahead, showing strength returning to the market.

· Average rent achieved in 2024 closely mirrored 2023, with a marginal 2% decrease.

· In 2024, new market listings rose by 8%, totalling over 385,000 listings.

"Looking at the rental landscape in the year ahead, I expect to see traditional seasonality in

the market, similar to 2024. Whilst we're projecting modest rent growth of 3-5%, the real

story will lie in the resilience of supply levels. This will be tested, primarily, by the

approaching the Renters' Rights Bill, which should come into effect by the second half of

the year. Encouragingly, last year's data did not see drops in available rental supply, even as

some landlords took advantage of an increase in sales to evaluate lower-performing assets

in their portfolios."

~ Gareth Atkins, Managing Director of Lettings