Foxtons lifts lid on rents and demographics in London rental market

Last month says the largest rental demand in the last three years across London according to Foxtons. 

The agency says the gradual lifting of Coronavirus restrictions has allowed people to reconsider their living arrangements as workers return to offices and universities think about opening their doors. 

This, in conjunction with a slight decrease in new properties coming to the market, has shown early signs of recovery in rents achieved across the capital. The increase in activity throughout Q2 2021 follows the trends of pre-Covid years and demonstrates that the market is returning to normality, Foxtons believes.

The agency reports that there’s been a 61 per cent increase in demand in June over May, leading to a 44 per cent increase in renters per new instruction in the same time period .

Applicant budgets have increased two per cent month-on-month as renters begin to increase their budgets to secure the right property; June also saw the second month of sustained growth in rents achieved with a five per cent increase month-on-month.

In terms of areas of the capital, the agency says there’s been an 83 per cent increase in demand comparing June 2020 and June 2021 in East London and even Central London has seen demand grow 67 per cent, potentially due to people looking to return to office based lifestyles and having more social options in the centre of the capital.

In its breakdown of renter demographics for London in June this year, Foxtons says 40 per cent of its tenants were from the UK, 36 per cent from elsewhere in Europe, and 13 per cent from Asia. The rest of the world contributed 10 per cent. 

Eighteen to 24 years olds contributed 20 per cent of tenants, 25 to 29 year olds accounted for another 30 per cent, and 30 to 34 years olds were 20 per cent.