The Foxtons’ Lettings Index data shows that average rents increased by 3% in February, settling at an approximate £561 per calendar month (pcm).

Despite a 10% decline from January 2024, the number of new instructions experienced a noteworthy 19% rise compared to the same period in 2023. This observation points to a resilient market with ongoing activity.

Applicant demand for February 2024 marked a 15% decrease, indicating a more tempered market compared to the preceding year. South London, while retaining its status as the most sought-after area, witnessed a substantial 21% decline in applicants compared to the same period in 2023.

Conversely, West London emerged as the sole region to display a year-on-year increase, ascending from an average of £459 in 2023 to £487 in 2024.

The stability in the ratio of new renters per new instruction in London, maintained since October 2023, ranging between 12 and 14 applicants per instruction, signifies a consistent pattern. However, a year-on-year decrease of 29% suggests a noteworthy shift in market dynamics, marked by a reduction in demand and an increase in supply.

Gareth Atkins, Managing Director of Lettings at Foxtons, shared insights into the evolving market, stating, “The London lettings market is adjusting, as predicted, with applicant demand down 15% and listings up 20% compared to February last year. Landlords must adapt, as simply listing their property is no longer enough to achieve a good return. Though applicant numbers remain higher than 2019, we are conducting 23% more viewings in order to secure tenancies. Building a competitive pricing strategy and instructing a proactive agent are crucial for a landlord’s success in this evolving market.”

Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent at Foxtons, added a nuanced perspective, noting, “South London had the highest demand, Central London had the highest budgets, and West London was the only region to see a year-on-year increase in average price this February. Dig deeper, and you’ll find even greater differences within each region. Landlords can set their listings apart by understanding and adapting to nuances in their local market. That’s why we leverage real-time data and analytics to optimize our clients' strategies, keeping landlords competitive within micro-markets.”