Rental applicant demand in London remained strong in November, rising 1% higher compared to November 2023, new data from Foxtons shows.

Year to date, 2024 has seen very similar demand to 2023, staying within 3% of the previous year. There was significant variation in demand across London; Central London saw a 15% increase in applicant demand year to date in 2024, whereas West London saw a 20% reduction.

Budgets have increased slowly throughout the year, as the expectation of increased competition and a scarcity of lettings stock has failed to materialise or have any significant impact on the market – yet. Whilst some landlords are leaving the market, there is an increased number of listings providing renters with more choice than previous years. Average rental prices have remained stable and even started to cool in recent months, likely to remain stable through Q1 2025.

New renters per new instruction in 2024 have been 12% lower than in 2023 year to date, averaging 15 applicants per instruction by the end of November. This month showed similar figures to October, as the average declined just 2%. Central London saw a 13% increase year to date driven by the increase in demand, whereas all other regions in London saw a significant decrease.

So far 2024 has had higher applicant budgets than any other year on record, and they remained high throughout November, 2% higher than in November 2023. Across 2024 there was a 2% increase in applicant budgets compared to 2023 year to date, with the average budget reaching £525 by the end of November.

Average rent in November 2024 was £541 per week, a 5% decrease month on month compared to October. Average rental prices were lower in November 2024 than in 2022 and 2023. Compared year to date to 2023, there has been a 2% decline in rent in 2024. Rent on houses has seen the largest decline in 2024 with a 5% decrease, whereas 1 bed flats have seen a 1% increase.

Renter spend in November fell 1% month on month as the lettings market cooled down for the year end. Overall in 2024, there was a small 1% decrease in renter spend compared to 2023 year to date. North London saw a small 1% increase month on month in renter spend.

Foxtons year to date key market indicators

Gareth Atkins, managing director of lettings, said: “Rental demand was steady and persistent in 2024, even as the number of listings increased – reaching 7% higher than 2023 [year to date] by the end of November. So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per each new listing year to date. As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”