With our final Lettings Market Report of the year, let's take a look back at what's shaped the lettings landscape this year through three key perspectives – the market itself, major changes in how properties are managed, and what's happening in development. It's been quite a year, from the steady pulse of demand to the game-changing Renters' Rights announcements and fresh momentum in house-building.
"The lessons of 2024 are clear...”
“...So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per each new listing year to date. Record-breaking budgets and localised demand highlighted the importance of savvy positioning. As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement.”
Gareth Atkins,
Managing Director of Lettings
Read Gareth's full quote in the Lettings Market Report - November 2024
Key numbers from the report
• November saw over 30,000 new listings enter the London market, according to our analysis of Zoopla's data – matching last November's volume.
• Applicant demand remained robust, showing a 1% increase in November 2024 compared to November 2023.
• Average rent achieved in November 2024 was £541, a 5% decrease from October.
As we wrap up our final report in 2024 (stay tuned, December's numbers and our 2025 outlook are coming in January), what we’re seeing is reassuring – a healthy flow of new properties meeting the Capital's persistent appetite for quality homes.
Photo by Foxtons Specialist Video & Photography team
A more familiar rhythm…
You might have seen lettings making headlines all year, but here's what's interesting: the market actually found its groove, falling back into those seasonal patterns we used to know so well. Just like last year, more properties came onto the market in the second half, helping everything find its balance.
How did our crystal ball do?
Back in January, we made a few predictions. We had our eye on average rent prices' impact on affordability, and on inflation coming down to bring a bit of positive sentiment into the market, improving renter budgets.
Renters' budgets did get healthier. It was more of a gradual improvement than a dramatic shift, which reflects the wider economic trend. As for rent prices? They showed more restraint than anyone expected, even cooling slightly as we headed towards year-end.
Photo by Foxtons Specialist Video & Photography team
Big moves in Property Management
Sure, the market might have found its rhythm, but that doesn't mean it was all business as usual. This year threw plenty of curveballs our way – especially with the new Labour government shaking things up around Renters' Rights.
Here's what Fran Giltinan, our Managing Director of Property Management & Customer Experience, makes of it:
“2024 is going to be remembered as a year of remarkable, fundamental change in how rental properties are managed. The announcement of new legislation like the Renters' Reform Bill, as well as potential regulation changes like the Decent Homes Standards and EPC standards, present new challenges.
“Meanwhile, technology is revolutionising the industry. With it, skilled property managers can streamline operations, improve tenant satisfaction and, most importantly, swiftly navigate the changes to maximise their landlords’ return on investment.”
Fran Giltinan
Managing Director of Property Management & Customer Experience
Photo by Foxtons Specialist Video & Photography team
Build to Rent is building momentum
If you're in the Build to Rent space, you'll know it's been a year worth celebrating. Sarah Tonkinson, who heads up our Institutional PRS and Build to Rent division, puts it perfectly:
“The market in 2024 has made the case for greater Build to Rent investment in London, demanding homes that resonate with an increasingly diverse renter pool. Build to Rent operators have a unique capacity to align their offering with genuine resident preferences, like flexible lease structures or the best-suited amenities.
“Knowing this, momentum has built at a remarkable rate throughout 2024. This year we found successful projects hinge on agility – the faster operators can strategise and respond in an increasingly sophisticated market, the better. So, you need data, you need expertise, and you need to put your agents through their paces.”
Sarah Tonkinson
Managing Director of Institutional PRS and Build to Rent
Put us through our paces
Come January, we'll see renters kick off their searches with fresh energy. But remember – a rental property's not just for New Year! While a new listing could help you make the most of that fresh-start motivation, getting it right from day one is going to be absolutely crucial in 2025 with more changes on the horizon.
That's where we come in – as London's number one estate agency brand*, we're here to do the heavy lifting, turning our data-driven expertise into real results for your portfolio.