This October was a complete departure from the normal trend, and our latest Lettings Report can tell you the full extent.
In the London Lettings market, there are busy and quiet seasons you can depend on. The third financial quarter (July, August, September) is always the busiest due to student and corporate lets, whilst the fourth (October, November, December) is the quietest with the holidays fast approaching. That’s why seeing October’s record rent prices surpass September’s record highs was such a shock.
We’ve said, in previous reports, this would be a busier Q4 than normal, but the reality is astonishing:
- Average rental prices have reached a new record high of £571 per week.
- There were 22,000 new listings in October 2022, which is the lowest monthly volume so far in a year of remarkably low stock. 2022’s new listings, year to date, are 30% lower than in 2019, before the pandemic altered usual seasonal trends.
- For the second month in a row in 2022, we saw renters spend over their budgets to secure a property. We hadn’t seen that since the pandemic took off. In October 2022, renters spent 101% of their registered budget.
Useful links for landlords and renters
Finding an apartment for renters
Renters’ frustration is palpable, we hear it in conversation with our applicants every day. The situation is complex, with many converging issues at play, like a lack of confidence in the housing market, legislation, rising buy to let mortgage rates, increased renewals, politics and logistics. However, the core of the issue is that there is not enough property in the London lettings market to go around.
The biggest things we can say, at the moment, is to take a look at the tips from our Managing Director of Lettings in Moving London: let’s find you a rental and to register with agents. When you’ve registered, you can get in to view properties quicker. We’ll be using our network of offices all across London to find the widest range of options for our rental applicants, and keeping as close an eye on the data and legislation as ever to keep our applicants up-to-date on the situation.
Finding your feet for landlords
21% more landlords have opted for Foxtons Property Management this year versus the same period last year.
Foxtons Property Management have seen this remarkable increase in landlords requesting our property management services in response to the increasing complexity around compliance and legislation. Fran Giltinan, Managing Director of Property Management, said, “Landlords are asking us for a professional service to navigate the compliance and legislation requirements of the London lettings market. Our ARLA qualified specialist team stay on top of over 150 pieces of lettings legislation to continually ensure your property is compliant.”
In response to rising Buy-to-Let mortgage rates, we highly recommend speaking to a mortgage advisor. Our partnered firm of mortgage advisors, Alexander Hall, have the specialist experience it takes to find the best route forward for London landlords. Peter Corbett, the Associate Director of Specialist Lending at Alexander Hall, said, “With the rate environment as changeable as it is, the importance of professional advice is more important than ever. With over 30 years’ experience in the market, Alexander Hall are well placed to access the very best rates for our landlords, and offer tailored, bespoke advice to help them achieve their goals.”
