Frustrated buyers renew rentals after base rate bombs...

New figures from London lettings agency Foxtons shows rents in the capital reaching new highs.

In October, rental prices reached a record £571 per week, exceeding the previous high of £553 per week in September this year.

This is a four per cent uplift in just one month; Central London continued producing the highest average weekly rent this year at £643 per week, a 29 per cent increase on prices seen in October 2021.

There were 22 renters competing for every new property in October 2022, which is higher than any October Foxtons has recorded in recent years.

While the number of renters competing has decreased from September, October’s 22 renters per new instruction is 40 per cent higher year on year.

In October, demand for properties in London followed the usual seasonal downward trend, with a 38 per cent drop in renter registrations over the course of a month; however, when compared to October 2021, renter registrations are still two per cent higher.

Applicants’ weekly budgets remained much higher than they typically do in October. The average weekly renter budget in October 2022 was £485, which is over £20 more than the average budget in October 2021. Year to date, budgets are seven per cent higher compared to 2021.

Gareth Atkins, the agency’s lettings managing director, says: “We’re seeing a return to renters spending over their registered budget at 101 per cent on average (a number we haven’t seen since before the pandemic). One reason for the competition is the rising interest rates, as renters who were considering homeownership are now looking to renew or find their next rental. Another reason is the sheer lack of supply.

“October saw the lowest monthly volume for new listings year to date. With rapidly expanding government regulations and the highest single lift in interest rates the UK has seen in years, landlords have a lot more to factor into their business plans going forward, so we’re likely to see these unusual trends continue further into Q4.”

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.