Demand from new tenants in London’s private rented sector is rising at a time when the number of homes available to rent is falling, new figures show.
The latest annual London Letting Report from Foxtons reveals that the number of new prospective tenants registered per new rental listing in 2018 increased to almost nine, with close to 175,000 tenants registered with the firm last year - the highest ever level.
The data reveals that the supply of available properties moved in the opposite direction to demand, with the number of properties available to rent at the end of 2018 dropping by 13% compared with the corresponding period the previous year.
Sarah Tonkinson, director of institutional PRs and Build to Rent, said: “We saw an increase in the number of renter registrations over the course of 2018 compared to 2017.”
London as a whole saw an 8% increase in tenant registrations, led by Zone 2 which saw the biggest rise with a 13% jump in demand, according to Foxtons.
Overall the stock of properties fell with 11% less properties coming to market over the same period as 2017. With demand outstripping supply, this provides a potential benefit to new and existing landlords.
Tonkinson added: “The numbers were particularly good for Q4 which is traditionally a slower market. That coupled with less available stock is good news for landlords for the start of 2019.”