The London rental property market began to cool last month, according to the Foxtons Lettings Market Index.

However, this followed the normal seasonal trend for winter months, the agency said.

According to the index, November saw a 26% reduction in renter registrations compared with October. However, demand remained 15% higher than the same period last year.

The outer zones of London continued to show higher levels of renter demand, particularly prominent in south and west London, where renter registrations were up 34% and 54% respectively compared to 2021.

In November, the average rent price was £551 per week, the third straight month that average rents have been £550 or more. While this represents a 3% month-on-month decrease, the price is still 20% higher year on year.

There were 15 renters competing for every new property this November, a 31% reduction compared with October but still 35% up on the prior year. However, for the first time in over two years, this figure was lower than the same month in the previous year.
Competition remained high in south London, with 31 renters per new instruction, while the east and west regions had 28 renters per new instruction.

Despite a 1% month-on-month decline in renters’ budgets, they were still 7% higher year on year. Central and east London continued to have the highest year-on-year increase for November, at 12% and 10% respectively.

On average, renters spent 100% of their rental budget in November. This was 1% lower in comparison to October 2022, but 3% higher than the same month in 2021.

Gareth Atkins, managing director – lettings at Foxtons, commented: “In line with a little more property available we have seen rental prices stall, but there’s still a long way to go before we see rent prices move away from recent record highs.”