One of the great strengths of London's rental market, and key
to its resilience, is the breadth of demand. It follows that one
of the greatest threats is loss of stock, affecting the market's
ability to meet demand. The outlook rests upon this delicate
balance between supply and demand. We considered some of
the capital's most influential trends and where they go next.
DEMAND
4 London Lettings Report Autumn/Winter 2022 | Drivers of resilience
DRIVERS OF
RESILIENCE
34%INCREASE
2022 COMPARED
TO 2021
1.4RENTERS
MOVED IN FOR
EVERY RENTER
MOVING OUT
JAN TO SEP 2022
5.1%OF DEMAND
IN 2022
18%OF MOVES
ARE FROM
OUTSIDE LONDON
IN 2022
CHANGE IN CORPORATE LETS
PROPORTION OF RENTERS FROM OVERSEAS
RATIO OF RENTER MOVES INTO AND OUT OF LONDON
AVERAGE RENTAL HOUSEHOLD SIZE
KEY STAT SCALE
Foxtons, showing change over time (cumulative Jan-Aug figures)
DRMA, renters starting new tenancies moving from overseas
Dataloft Rental Market Analytics (DRMA)
DRMA, showing new tenancies
Change
Students Other renters
Ratio of moves
No. of people in household
higher lower
higher lower
higher lower
higher lower
Range
Range
Range
Range
Outlook
Outlook
Outlook
Foxtons
Foxtons
Foxtons
DRMA
DRMA DRMA
DRMA
DRMA
CORPORATE LETS
OVERSEAS RENTERS
RETURN TO LONDON
REDUCING HOUSEHOLD SIZE
• BOUNCE-BACK IN RELOCATIONS POST PANDEMIC
• OVERSEAS STUDENT NUMBERS HIGHER THAN
PRE-PANDEMIC
• POST-COVID RETURN OF STUDENTS
• TREND BEGAN BEFORE PANDEMIC
• HIGH EMPLOYMENT
• GROWING DEMAND FROM NON-EU STUDENTS
• RETURN TO OFFICE AND LIFESTYLE CHOICES
FUELING DEMAND
• HYBRID WORKING SUSTAINING TREND
2016
2016 Q3 19
2018
2018
Q3 21 2020
2020
Q3 23
2017
2017
Q3 20
2019
2019
Q3 22
2021
2021
2022
2022
2023
2023
40%
14%
-60%
0%
0%
6%
8%
12%
10%
4%
2% Q1
20
Q1
22
Q3
20
Q1
21
Q2
20
Q2
22 Q3
22 Q4
22 Q1
23 Q2
23 Q3
23 Q4
23
Q4
20
Q2
21 Q3
21 Q4
21
2.0
2.25
0.6
1.0
1.90
1.95
2.00
2.05
2.10
2.15
2.20
FOXTONS SAW
21.5%ASIAN/MIDDLE
EASTERN RENTERS
IN 2022, UP FROM
15.9% IN 2019
NEW RENTAL
HOUSEHOLDS
10%SMALLER
IN 2022,
THAN IN 2016
DIMINISHING
HOUSEHOLD SIZE
LED TO OVER
6,000EXTRA TENANTS
LOOKING FOR HOMES
IN LAST YEAR
12%OF RENTERS
MOVED FROM
OVERSEAS
IN 2022
Outlook
combined