By There was a significant decrease in the supply of new properties listed to rent in London in 2018, while the average number of tenant registrations per new listing reached its highest ever level, according to recent data from Foxtons.
Supply of new properties in London fell by 13 per cent in 2018. This was at a time when the average number of tenant registrations per new rental listings increased to almost nine per cent which is the highest figure on record for those looking to rent a home in the capital, according to the recent data from Foxtons.
The average weekly rent in London over the course of 2018 was £456, which is an annual increase of 2.6 per cent and for the year. There were a total of almost 175,000 tenants registered for new rental listings in 2018, which is 8 per cent higher than in 2017 over the same period.
Also, demand didn’t slow down in the fourth quarter, which is traditionally when the market tapers off, according to Foxtons.
Sarah Tonkinson, director of institutional PRS and build to rent at Foxtons, said: “We saw an increase in the number of renter registrations over the course of 2018 compared to 2017 (8 per cent up). The numbers were particularly good for Q4 which is traditionally a slower market. That coupled with less available stock is good news for landlords for the start of 2019.”
Average rents and property types
The average weekly rent for a studio flat was £289, which is up 1.5 per cent year on year, while for a one bed flat it was £366, which is up 2.2 per cent. For a two-bed flat, the average was £461, which is an annual rise of 1.6 per cent and for a three-bed flat, it was £658, up 3.9 per cent, according to the recent data from Foxtons.
Zone 2 saw the biggest increase in tenant registrations with a 13 per cent rise in demand while supply fell by 11 per cent. Meanwhile, zone 1 saw the highest rental increases of 2018, specifically with larger properties with three or more bedrooms seeing the biggest rise, according to the recent data from Foxtons.
Gross yields for flats rose over 2018 from 4.5 per cent to 4.9 per cent but this is in contrast to the annual rate of return, which slowed significantly to 3.6 per cent from 7.8 per cent in 2017.
Over 2018 as a whole, 8.7 new renters registered for every property listed compared to 7.4 in 2017. Overall, Foxtons offices saw 8 per cent more tenant registrations in 2018 than in 2017, according to the recent data from Foxtons.
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