The number of new instructions in February 2024 was 20% higher than in February 2023, according to Foxtons analysis of market data.

Despite being 10% lower than January 2024, the number of new instructions is 19% up this year to date when compared to the same period in 2023.

Applicant demand in February 2024 decreased by 15%, which indicates a more moderate market than last year. While South London continued to be the most in demand area, it also saw the largest decline in applicants, 21% lower than the same period 2023.

London rental prices decreased 2% year-on-year, but rose 3% compared to January 2024, averaging £561. West London is the only region that saw a year-on-year increase, rising from an average of £459 in 2023 to £487 in 2024, year to date.

The number of new renters per new instruction in London has been stable since October 2023, remaining between 12 and 14 applicants per instruction. The year-on-year decrease of 29% highlights indicates shift in market dynamics as demand reduced and supply increased.

Foxtons managing director of lettings Gareth Atkins commented:”The London lettings market is adjusting as we predicted, with applicant demand down15% and listings up 20% compared to February last year. Landlords must adapt, as simply listing their property is no longer enough to achieve a good return. Though applicant numbers remain higher than 2019, we are conducting 23% more viewings in order to secure tenancies.”