The number of properties coming to market saw a 19% increase in March 2023 compared to February, while applicant demand rose by 4% during the same period, remaining at similar levels to March 2022. The average weekly rental price in March 2023 decreased by 4% compared to February but remains 14% higher year-to-date compared to 2022.

New data from Foxtons, London’s leading letting agent, reveals that growth in the supply of lettings properties on the market is beginning to ease tenant affordability. London data analysis by Foxtons shows that the number of properties listed rose in March, with listings up 19% compared to the previous month. This increase in instructions took the total to around 30,000, up from around 25,000 seen in previous months.

Although still below pre-pandemic levels of stock, the additional instructions are a step towards a better balance between supply and demand. Westminster and Tower Hamlets continued to have the highest concentration of new lettings instructions coming to market.

Applicant demand remains strong, rising 4% from February to March, and demand has reached similar levels as in March 2022, with only a slight 1% decrease year-to-date. Due to the rise in new instructions, the ratio of 17 new renters per new instruction in March was 17% lower than the previous month and 7% lower year-to-date.

The impact of higher stock levels has led to some reduction in prices, with the average weekly rent down 4% compared to the previous month. However, rental prices were still 14% higher compared to 2022 year-to-date.

Foxtons data showed that the average budget for applicants remained high in March, increasing 1% compared to February 2023 and 8% year-to-date compared with 2022. On average, renters spent 100% of their budgets to secure a property in March, 3% higher year-on-year, with no change compared to February.

Gareth Atkins, Managing Director of Lettings, commented on the market’s strength and how it will progress at a steadier rate through 2023, while Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent, emphasised the importance of understanding market intricacies and getting started early this year as demand and new listings continue to rise.