Summer rents soar with 18% annual rises in places

Data from London-focussed agency Foxtons reveals that average weekly rental prices in May have surpassed the peak of 2022.

The average weekly rent in London passed £600 in May, a 13 per cent increase year-on-year. Central London, once again, achieved the highest average weekly rent. However, East London showed the highest year-on-year increase at 18 per cent compared to May 2022.

Foxtons’ analysis of London data shows that market activity picked up significantly in May as the busy summer lettings period kicked off. New listings increased 22 per cent from April to May, whilst applicant demand increased 31 per cent over the same period.

Registrations remained broadly flat compared to last year, however Foxtons saw registrations rise eight per cent in South London and 13 per cent in West London year-to-date compared to last year.

The average rental budget for applicants increased two per cent from April to May. Applicants looking to rent in North and East London increased their budgets the most, budgeting 12 per cent more than last year.

The percentage of budget that renters spend to secure a property has increased for the first time in three months, taking the overall average to 102 per cent. Renters in Central London spent 108 per cent of their registered budget in May 2023, a seven per cent increase compared to April 2023.

The agency’s lettings director - Gareth Atkins - says: “We are seeing trends in demand and supply return to a more traditional cycle, in line with what was commonplace before Covid. The one major difference is that even with May’s increase in properties to rent, applicant demand is far exceeding supply. 

“This is partly due to the normal summer influx of incoming university students, corporate relocations and families moving during school holidays combined with the reality that supply has never returned to pre-Covid levels. In May, eight per cent more renters registered per each new instruction; an early sign of the competition to come.”