London renters were today warned by Foxtons (LSE:FOXT), the city’s biggest agency, that there is no sign of the current rental market easing in the coming months.
Foxtons (LSE:FOXT) claims that new listings fell by 40% over the year, with 28 renters competing for every new property, which in turn forced prices up and often led to bidding wars.
The situation and imbalances were more prevalent in East London, usually a hotbed for professionals, where often 38 renters would be battling it out for one property.
Across the capital, prices remained close to all-time highs in July, with rents up 23% compared to last year and South London being the most desirable area.
Central London, unsurprisingly, had the highest average weekly rent at £627, up 33% on 2021.
“Rent is making headlines in the Capital. Putting aside renewals, which are reflected in the ONS data, London’s average rental price for new rents was £541 per week in July, hot on the heels of June’s £549, which broke the record as the highest monthly rental price in years,” said Foxtons' managing director Sarah Tonkinson
“This is due to high demand and low supply – aggregators have had 40% fewer new listings year to date.”
Separate research, quoted in the Evening Standard, supported the claims made by Foxtons, which showed the average price of rent in London had risen 10% over the past year.
Lettings platform company Goodlord’s co-founder Tom Munday said rising inflation, bills and landlords leaving the rental market due to uncertainty regarding rental reforms are all putting a squeeze on households.
Shares in Foxtons eased 2% to 37.7p.