New figures from London-focussed letting agency Foxtons show rental demand remaining very strong.

Last month’s figures show that compared to January 2020, demand was up 77 per cent.

South London continued to be the most popular among renters, with the highest rental registrations by value compared to other London regions, while West London saw the highest year on year increase in demand, at 29 per cent.

North London registered the largest drop in demand, 33 per cent down year on  year.

The agency says there were 19 renters competing for every new property in January 2023, some eight per cent lower compared to the same month last year. 

Yet this is still significantly higher than the 11 renters per instruction seen in January 2020 and 2021.

The average rent in January 2023 remained flat for the third consecutive month, hovering around the recent record highs. 

This figure is 20 per cent higher compared to January 2022, demonstrating the intensity of competition between renters in the London market.

Foxtons data found that rent has been rising across all areas of London, with increases of 25 per cent in Central London, 20 per cent in South London and 19 per cent in East London. 

A three bed flat saw the highest year on year increase in average rental price, up 25 per cent on January 2022.

Foxtons says January 2023 had an average applicant budget close to £500 per week, which is the highest figure recorded by thee agency  in any January over the last four years. 

Industry data shows that new listings in January rose 61 per cent higher than in December 2022.

However, year on year, new listings were seven per cent lower than January 2022, continuing the long-term trend towards fewer listings that has been underpinning higher rent prices.