London is a hive of activity this summer, as a new government takes the reins and major sporting events dominate the headlines. Amidst this backdrop, the lettings market has also been heating up. Our latest Lettings Market Report reveals a busy Q2, as our experts weigh in on what's to come.
More homes for London renters
See what Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent, has to say about Labour's housebuilding focus and the rental market:
Demand is on the rise
With June’s lettings market data in, we can see how renter demand performed in Q2. There was a bit of a slow start at the beginning of the year, with lower demand in Q1 2024, so year-to-date figures remain lower compared to last year. However, the second quarter of 2024 saw greater demand, which brought levels up in line with Q2 2023. This trend may continue into Q3, which tends to be the busiest quarter of the year. And if that happens?
“…This means the market will be fast-paced, so you will need to be prepared and agile to achieve the best results. Partnering with an experienced lettings team can help you to reach high-quality tenants efficiently.”
~ Gareth Atkins, Managing Director of Lettings
Find Gareth’s full comment and more data on demand in our Lettings Market Report
Landlords stay focussed
A new bill on rental reform has been introduced, as Labour begins to enact its manifesto promises. This has undoubtedly raised questions for landlords (see our Director of Legal’s explanation of the new Renters Rights Bill here). In our Lettings Market Report, Fran Giltinan remarks on our own research into what landlords will do in this changing market:
“Landlords across the capital have been mindful of incoming legislation and how it will affect their rentals. However, our recent research with feedback from over 1,000 London landlords has suggested that the majority of Foxtons clients will not be altering their approach to investing in, owning and renting their properties. This should also be seen as most welcome from the point of view of tenants too in that it is unlikely that landlords will be unnecessarily leaving the market.”
~ Fran Giltinan, Managing Director - Property Management
Key insights
• There was a slight 4% reduction in listings from May to June, although the number of new instructions to the market was still over 30,000 in June.
• Applicant demand has risen by 15% month-on-month as the peak lettings season begins.
• Average rent achieved remains stable on a month-on-month basis with no significant change from May 2024.
More insight on the lettings market:
• ''The general election will not affect my property plans' say Foxtons landlords
• 'I'm about to become a first-time landlord, what do I need to know?'
• What a city worker wants in an apartment
• Video: the complete end-to-end service for investing landlords
“While the new Labour government hit the ground running with a strong focus on traditional housebuilding, the needs of the significant renter population in the UK shouldn't be overlooked.
“Build to Rent presents a compelling solution, particularly in London, with its expansion into diverse areas and price points. These high-quality homes with convenient transport and built-in community features are increasingly attractive to renters.
“The growing momentum surrounding Build to Rent suggests its potential to be a valuable tool for local councils in achieving the UK's overall housing goals.”
