Average rent in London hits 'extreme' £553 per week
Tenants in London have never paid so much for a place to live, with the average weekly rent soaring to £553 per week in September.
Figures from estate agent Foxtons show that landlords are taking advantage of a lack of supply to push prices, with 29 renters on average competing for every new property last month.
As demand remains high, there were only 23,000 listings in September, the lowest monthly volume this year. The number of new listings year-to-date is 38% lower than the same period last year.
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The south and east of the capital saw the most competition with 37 applicants per instruction, and the north saw the largest monthly increase with 20% more applicants per instruction.
The average rental price of £553 in September broke June 2022’s record of £549 per week as the highest average rental price ever recorded. Central London continued to produce the highest average weekly rent this year at £636 — a 30% increase on prices seen in 2021.
“The lettings market in September continued to grow as we hit a new record high for the average rental price. This demand was triggered by huge numbers of new renters looking for property: students physically returned to London post COVID, corporate relocations resumed at full pace and rising interest rates persuaded some buyers to continue renting in the immediate future,” Gareth Atkins, managing of lettings at Foxtons, said.
“It meant, in September, 29 applicants registered for every new property brought to the market. Combined with this, there were 38% less new market listings than the same time last year. With over three quarters of our tenants choosing to renew rather than look for a new property, I don’t expect the pressure of low stock to ease anytime soon,” he added.
Renters’ average weekly budget was £494 in September 2022, just slightly lower than the £500 per week seen in August 2022.
Sarah Tonkinson, managing director for institutional private rental sector (PRS) and build to rent, said: “The normal seasonal trends you’d see in the third quarter were taken to their extremes this year.
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“August and September are always peak lettings season, but this year, August saw the highest level of demand ever recorded, and average rent broke records in September at £553.
“Now that we’re past the peak, renter demand should relax as it does in the fourth quarter, but I suspect it’ll remain significantly higher than we’d typically see for October. The lack of supply is still making headlines, as September’s 23,000 new listings was the lowest level yet in 2022.
“From a build to rent perspective, there will be an influx of stock in the new year, however, we’ve already got renters registered now looking for their next home.”
