London rents hit record £553 a week average as shortage continues

The average price of renting a property in London hit £553 a week in September with almost 30 prospective tenants applying to rent each property on the market on average.

The record average of £553 eclipsed the previous high of £549 seen in June of this year, according to the latest data from Foxtons, with estate agents describing the levels of demand being shown in the capital as “extreme”.

Managing director of lettings at Foxtons Gareth Atkins said: “The lettings market in September continued to grow as we hit a new record high for the average rental price.”

He added: “This demand was triggered by huge numbers of new renters looking for property. Students physically returned to London post-Covid, corporate relocations resumed at full pace and rising interest rates persuaded some buyers to continue renting in the immediate future.”

The number of new listings to the market fell by 38% last month when compared to the same period of last year, with more than three-quarters of tenants choosing to renew their current contract rather than move on.

The most expensive area to rent in the capital remains in central London with an average rental cost of £636 per week in September, up 30% from the same period last year.

South and east London remained the most popular place to rent in terms of application, with an average of 37 per property recorded in both locations.

Sarah Tonkinson, a managing director at Foxtons, said: “The normal seasonal trends you’d see in the third quarter were taken to their extremes this year.”

She added: “August and September are always peak lettings season. Now that we are past the peak, renter demand should relax as it does in the fourth quarter, but I suspect it’ll remain significantly higher than we’d typically see for October.”