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The average rental price in London continued to increase in February, reaching record highs. The
continual increase in rental price is unseasonal and perhaps a sign of what is to come this year.
Tenants chose to stay in their current rental properties and extend their tenancies, which contributed,
in part, to the shortage of new instructions coming to the market. With such intense competition for
each property, we would expect renters to continue increasing their budgets in line with the rising
rental prices.
· The average rent achieved in February 2023 rose 5% from the previous month, reaching
over £570 per week, which exceeded the record highs of the peak lettings season last
summer.
· The number of properties coming to the market in February were down 5% compared to
January, and 4% down year to date compared to last year.
· Applicant registrations this February were down 7% from the previous month, which
followed the pattern set in February 2022, a highly competitive year.
Foxtons Lettings Market Report
1
Foxtons - Lettings Market
Contact
EMAIL
sarah.tonkinson@foxtons.co.uk
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+44 (0)20 8636 4605
Considering how 2022's prices climbed through the latter end of the year, we did expect higher prices in
Q1. February's unseasonable rise in average rent price, higher than last year's record-breaking peaks at
over £570 per week, is a strong indicator of how intense the imbalance is between supply and demand in
the London lettings market. This month, we've seen many more tenants choosing to extend their lease, so
those properties aren't coming back onto the market. At the same time, we've found a remarkable
increase in corporate searches as businesses take the opportunity of favourable currency rates to invest in
new London offices, raising demand.
~ Gareth Atkins, Managing Director of Lettings
With 20 renters registering per each new property on the market, right across London, we are in the midst
of an unbelievably competitive first quarter - and everything that comes with it. Budgets have increased in
every region, and average rent has, once again, broken records. However, despite the low rental supply in
London, there was an interesting increase new listings in the boroughs of Westminster and Tower Hamlets.
Sudden opportunities like this will crop up across London through the year, and our local experts work
with renters to get them matched and into their new homes at pace with this fast-moving market.
~ Sarah Tonkinson, Managing Director of Institutional PRS and Built to Rent
EMAIL
gareth.atkins@foxtons.co.uk
PHONE
+44 (0)7773 816 498
EMAIL
press@foxtons.co.uk
PHONE
+44 (0)20 7766 1230