NEW: Rents still rising fast in London as up to 38 tenants chase each property
Latest rental market data from London reveals a private rental sector still on fire as rents rise by 11% year-on-year, says agency Foxtons.
This has been driven in part by a seasonal six percent surge in demand during August as those returning from holiday start their search for a new home and less organised students seek properties to rent ahead of the semester start.
But the most extraordinary figures are the average numbers registering their interest in homes which remain high at 23 per new rental instruction overall but reaching 38 per property in East London.
Rents are likely to continue going up in the short term – Foxtons says its analysis of Zoopla data revealed some 35,000 new properties coming onto the rental market, an eight percent increases year on year.
Ease off
But in the medium to long-term, pressure on the capital’s private rental sector should reduce as the number of renters registering to look for rental properties begins to ease off, the data shows.
Higher rents will hopefully persuade fewer to quit the sector as many face higher costs as mortgage rates continue to remain high, although London has a long way to go before yields compare favourably with the rest of the UK.
A top ten list of ‘best places to rent out property’ issued by DigitalLoft over the weekend revealed all are outside of London and the South East with New Newcastle upon Tyne at poll position featuring a gross rental yield of 4.58%.
Gradual
“August remained in line with our expectations and there was gradual, steady market growth throughout the year,” says Gareth Atkins, Managing Director of Lettings at Foxtons (pictured).
“Compared to July, demand rose, supply fell and prices remained consistently high.
“But competition was not nearly as frenetic as it was in 2022 and as such. Across our office network, we continue to see more landlords requesting our management service to protect their asset from a financial and compliance perspective.”
