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Increase in Property Supply is Creating ‘Normalised’ Rental Market

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    Foxtons Report Reveals Good News for Renters and Landlords in London Market

    Foxtons recently published a report compiling their internal lettings data, which provides an overview of the latest trends in the London rental market.

    The report states that increasing listings contributes to a more ‘normalised market’, which is good news for renters, landlords, and agents and can help create a healthier buy-to-let market.

    They found a significant increase in new rental homes on the market in May compared to the last two years. Tenant applications also increased. A rise in rental demand is typical for the summer season, and demand is expected to be similar to the previous year’s volumes.

    Find Out More: Learn what makes a good buy-to-let investment and the best way to invest in property in London with our 2024 investment guides.

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      Demand in London Lettings Market is Up 20% and Supply Up 36%

      The Foxtons Lettings Market Report reveals that demand in the London market was up 20% month-on-month in May. There were also 36% more listings than in April and a 10% annual increase. The average rent achieved was £577 per week in May 2024, down last year’s average of £606 (-2% in percentage terms).

      Gareth Atkins, Managing Director of Lettings at Foxtons, said: “As we move into peak summer lettings season, supply is growing. Renter demand is also growing, mirroring 2023’s Q2 trends with a 20% month-on-month increase. If demand follows last year’s trends through summer, Q3 will be a very busy market.

      “The announcement of the general election at the same time has resulted in the shelving of the Renters Reform Bill. This means there will be no immediate changes to fixed-term tenancies or any of the other provisions within the bill. Renters Reform is likely to be reintroduced under a new government, but for now, it’s business as usual.”

      Further Reading: Learn more about long-term property investments and how to make money from real estate with our latest buy-to-let guides.

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      What About Other UK Regions?

      According to Zoopla’s latest Rental Market Report, published in early June, there has been an overall boost in choice for renters across the country. They found that the average number of homes available for rent per estate agent has increased by 18% year-on-year.

      This is promising, but overall, the supply of available rental properties is still a third lower than at pre-pandemic levels, as the stock remains broadly flat in the private rental sector. Why not take a look at the latest new builds Liverpool has to offer!

      Zoopla states that more investment in the private rental sector is needed to alleviate the current supply-demand imbalance substantially.

      To learn more about the UK property market, take a look at our buy-to-let area guides, covering topics such as investment property in Milton Keynes and available investment property in Harrogate.

      Increase in Property Supply is Creating Normalised Rental Market

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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