Foxtons Lettings Market Index – October 2022
Rental prices reach record high weekly price in October as rising interest rates and lack of supply put pressure on rental prices
- Average rental prices reached new record high of £571 per week, breaking the previous record of £553 per week in September 2022
- Central London rental prices almost 30% higher than October 2021
- There were 22,000 new listings in October 2022, the lowest monthly volumes so far this year
- In October, renters spent 101% of their registered budget, the second month in a row renter spend reached pre-pandemic levels
- There were 22 renters competing for every new property in October 2022 which is higher than any October Foxtons recorded in 2021, 2020, or 2019
New figures today from Foxtons, London’s leading estate agent, show that rental prices have reached record highs, as rising interest rates and lack of supply put pressure on rental prices.
In October, rental prices reached a new record high of £571 per week, exceeding the previous high of £553 per week in September 2022. This is a 4% uplift in comparison to September, which would typically be the peak for the lettings market. Central London continued producing the highest average weekly rent this year at £643 per week, a 29% increase on prices seen in October 2021.
There were 22 renters competing for every new property in October 2022, which is higher than any October Foxtons has recorded in 2021, 2020, or 2019. While the number of renters competing has decreased from September, October’s 22 renters per new instruction is 40% higher year on year.
Year to date – 2022
|Supply / New Instructions YoY||Demand / New Renter Registrations YoY|
In October, demand for properties in London followed the usual seasonal downward trend, with a 38% reduction in renter registrations from September 2022 to October 2022. However, when compared to October 2021, renter registrations are still 2% higher. With intense competition in the Capital, renters have turned their attention towards the outer zones. In South London, registrations are up 37% from 2021, and in West London, registrations are up 57% from 2021.
Applicants’ weekly budgets remained much higher than they typically do in October. The average weekly renter budget in October 2022 was £485, which is over £20 more than the average budget in October 2021. Year to date, budgets are 7% higher compared to 2021.
For the second month in a row in 2022, Foxtons saw renters spending over their budgets to secure a property. In October 2022, renters spent 101% of their registered budget, a 3% increase compared to October 2021.
Gareth Atkins, Managing Director – Lettings, said:
“Throughout our front offices and within our renewals team, October has proved to be a very busy month. Competition for London lettings is intense. Average rent prices have reached a new record at £571 per week, and we’re seeing a return to renters spending over their registered budget at 101% on average (a number we haven’t seen since before the pandemic). One reason for the competition is the rising interest rates, as renters who were considering homeownership are now looking to renew or find their next rental. Another reason is the sheer lack of supply. October saw the lowest monthly volume for new listings year to date. With rapidly expanding government regulations and the highest single lift in interest rates the UK has seen in years, landlords have a lot more to factor into their business plans going forward, so we’re likely to see these unusual trends continue further into Q4.”
Sarah Tonkinson, Managing Director – Institutional PRS and Build to Rent, said:
“The lettings market usually follows a set pattern with August and September as the busiest months of the year, followed by a quiet Q4. However, this October’s £571 average rent prices actually surpassed September’s record high, which is a huge departure from the normal trend. Typically, Londoners don’t want to move house around the holidays, and we often help negotiate different tenancy lengths between landlords and tenants, like 15 months instead of 12, to avoid properties coming on the market this time of year. Instead, there were 22 applicants per new listing last month, which is higher competition in October than we’ve seen even pre-pandemic in 2019. We mentioned, in previous Lettings Market reports, that this might be an unusually busy Q4, and so far, it’s turning out to be absolutely true.”
JLL Spark announces new fund for China-based proptech companies
SHANGHAI, Nov. 6, 2022 – JLL is increasing its technology presence in China and intends to set up a new RMB fund. The JLL Spark China Venture Fund will launch in 2023 allocated for financing China-based proptech companies. The fund will focus on seed and Series A investments into startups where JLL can play a significant role in bringing them to market with its client base.
The JLL Spark China Ventures Fund is affiliated with JLL Spark Global Ventures, the corporate venture arm of JLL and part of the JLL Technologies division. Since 2018, JLL Spark Global Ventures has invested over $340 million across 40+ propech companies.
Through this new RMB fund, JLL will identify and invest in technology startups that support investor and occupier clients with innovative solutions in construction tech, sustainability, financial tech, smart buildings, industrial tech, and the future of work, thereby driving the transformation of China’s real estate industry through technology innovation.
Led by experienced developers, technologists, entrepreneurs, investors of high-growth tech companies and commercial real estate experts, JLL Technologies (JLLT) delivers a comprehensive technology portfolio of purpose-built software platforms, apps, hardware and technology services, as well as innovations from venture-backed companies.
JLLT has launched two products in China to empower commercial real estate and support clients’ growth, Real Estate Partner and Rujian Data. Real Estate Partner is a commercial real estate leasing service platform and Ruijiang Data is an analytical platform for office.
Proptech and Property News in association with Estate Agent Networking.
Andrew Stanton is the founder of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.