Lettings Report - Lettings Market Report January 2023

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Contrary to the sharp changes seen in 2022, early indicators suggest a steadier market in 2023.

Foxtons research shows that the availability of new lettings stock has begun to be redistributed

throughout the year, and that renters may need to change their behaviours to suit. Instead of a peak

lettings season over the summer, we expected renters to continue searching throughout the year to

compete for new stock as soon as it becomes available. This could maintain consistent upward

pressure on rent prices.

· Applicant registrations in January were up 96% from December last year, as renters

started the new year focussing on securing a new home.

· New listings in January were above 20,000, which was 7% lower than the same

period last year.

· The average rent achieved in January 2023 remained flat for the third consecutive

month, hovering near the record highs seen recently. This figure is 20% higher than in

January 2022, which demonstrates the intensity of competition between renters in the

London market.

Foxtons Lettings Market Report

Foxtons - Lettings Market

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With a 7% decrease year on year, January has aligned with the same long-running trend of

low letting supply that has fed the bottleneck on London's high demand and driven up

competition and prices across the Capital. 2022 pricing is likely to continue into 2023, but at a

steadier incline than last year's sharp rises, more in line with conventional market trends. There

is an opportunity for enterprising landlords to invest in the excellent buy-to-let stock that's

come to the market this new year and contribute to London's supply of homes to let.

~ Gareth Atkins, Managing Director of Lettings

Renters may need to change tactics in the coming year, setting aside more time for their

property search and preparing to move fast when they see something they like. Our

research suggests the market will grow steadily, with property coming to the market

throughout the year instead of concentrated around the typical summer peak. This January

had the highest average applicant budget we've reported in four years, as savvy renters hit

the new year running.

~ 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