Figures from London-focussed agency Foxtons suggest that rentals have reaching the highest ever weekly price in the capital.

The average in September was £553 per week, breaking June 2022’s record of £549 per week; and Central London continued to produce the highest average weekly rent this year at £636, a 30 per cent increase on prices seen in 2021.

Levels of rental stock remain low and in September there were just 23,000 new listings, the lowest monthly volume of new instructions this year. The number of new listings year-to-date is 38 per cent lower than the same period last year.

The data finds that despite a seasonal reduction in demand, the market has not shown its typical signs of autumn cooling.

Demand remained high with an average of 29 renters competing for every new property in September. This was slightly down from the 33 applicants per instruction in August, but still higher than anything Foxtons saw in the three preceding years. 

The South and East London regions had the most competition with 37 applicants per instruction, and the North London region saw the largest monthly increase with 20 per cent more applicants per instruction.

Foxtons data also found that there was a notable increase in the proportion of budget that renters were willing to spend to secure a property. In September 2022, renters spent 101 per cent of their registered budget, slightly more than the 98 per cent in August.

“This demand was triggered by huge numbers of new renters looking for property: students physically returned to London post Covid, corporate relocations resumed at full pace and rising interest rates persuaded some buyers to continue renting in the immediate future” explains Gareth Atkins, Foxtons’ letting managing director.

And Sarah Tonkinson, Foxtons, managing director of Build to Rent, adds: “The normal seasonal trends you’d see in Q3 were taken to their extremes this year. August and September are always peak lettings season, but this year, August saw the highest level of demand ever recorded, and average rent broke records in September at £553. 

“Now that we’re past the peak, renter demand should relax as it does in Q4, but I suspect it’ll remain significantly higher than we’d typically see for October. The lack of supply is still making headlines, as September’s 23,000 new listings was the lowest level yet in 2022. From a Build to Rent perspective, there will be an influx of stock in the new year, however, we’ve already got renters registered now looking for their next home.”