Rental stock in London has reached its highest levels in four years, according to Foxtons, challenging recent claims by Savills that the market is facing a severe supply shortage. The two property giants are presenting conflicting pictures of the Capital’s rental market, leaving landlords and tenants wondering what lies ahead.
Foxtons reports an 8% increase in new rental stock compared to the same period last year, with October seeing the most significant activity since 2019. Meanwhile, Savills maintains that dwindling supply will drive rental prices up nearly 18% over the next five years.
Foxtons: “Highest stock levels since 2019”
In its latest report, Foxtons revealed that rental stock availability in London has surged, describing the current market as the best for renters in years. Gareth Atkins, Managing Director of Lettings at Foxtons, highlighted the development: “Rental listings in London reached their highest October levels since 2019, signalling a notable increase in stock. This is positive news for both renters, who benefit from a greater choice of properties, and landlords, who may find it easier to attract tenants.”
The agency noted a slight cooling in tenant demand compared to last year, with a 3% drop in October 2024 and a seasonal 32% decrease from September. However, central London continued to show robust activity, with applicant interest rising by 15% year-on-year. Foxtons also observed a shift in rental prices, with the average weekly rent now at £558—down from a September peak of £593.
Savills: “Supply pressures persist”
Savills, however, paints a different picture. According to its research, the number of available rental listings per branch in September was 16% below pre-pandemic levels from 2018-2019. The firm identified a persistent supply crunch as a key factor expected to push rents up by almost 18% by 2029.
Lucian Cook, Head of Residential Research at Savills, commented: “The fundamental issue in London remains a lack of supply. Even as stock fluctuates seasonally, there simply aren’t enough homes to meet demand in the medium to long term. This is keeping upward pressure on rents, especially in key locations.”
The apparent contradiction between Foxtons and Savills underscores the complexity of the rental market, with seasonal trends, regional variations, and long-term structural challenges all at play.
What it means for landlords and tenants
For tenants, increased stock reported by Foxtons could mean more choice and potential relief from skyrocketing rents. However, Savills’ forecast suggests this reprieve may be short-lived, as the broader supply-demand imbalance remains unresolved.
Landlords, on the other hand, may find the current environment both an opportunity and a challenge. Higher stock levels make it easier to attract tenants, but they may face pressure to keep rents competitive.
