London's rental market has seen a significant boost with a 5.7% rise in new listings across the capital in May, according to property firm Foxtons. This surge in supply comes as competition among prospective tenants eases, with overall demand down 7.1% from last year.
Despite a slight dip in demand, the number of renters registering for properties increased by 13.7% in May, indicating a pick-up in activity ahead of the busy summer letting season. However, the 5.5% monthly drop and 8.6% yearly decline in new renters vying for each newly listed property suggests that the reduced competition is beginning to have an impact.
Foxtons' managing director of lettings, Gareth Atkins, notes that the introduction of the Renters' Rights Act had a brief impact on the market but has since settled back into its usual rhythm. He advises landlords to focus on securing the right tenant and maintaining their properties well in this stable market.
The average applicant budget shows minimal fluctuation, with an annual increase of 0.3% to £548 per week, while rents achieved have remained relatively stable. However, budgets did see a 2.1% rise between April and May.
A closer look at regional figures reveals significant variations, with West London experiencing a substantial 36% annual increase in new instructions and 17% rise in tenant registrations. North London saw a 27% increase in supply, while Central and South London recorded declines in both new instructions and tenant registrations compared to last year.