London rental prices were a staggering 20% higher at the end of last year compared to 2021, with 18 renters competing for every new property.
Foxtons Lettings Market Index reveals that at �551, December's average weekly rental price broke records for end-of-year prices. Central London remained the most expensive area, with average weekly rents 26% higher than the previous year.
Foxtons found that new listings in December dropped below 20,000 in the capital to reach a four-year low. Across the entire year, 2022 had 32% fewer listings than 2021 while demand remained high, finishing the year 14% higher.
Renters spent an average of 99% of their budgets to secure a property in December, which was 1% lower than in November but still 3% higher compared to 2021, and just below budgets of over 100% which Foxtons saw before the pandemic. Year-on-year, budgets were 7% higher.
Gareth Atkins, MD lettings (pictured), says: 'Looking forward, London is starting 2023 with comparable levels of rental demand and supply to 2022, which might indicate a similarly strong market to 2022's first quarter.
"However, I suspect we'll see the market rise more steadily than last year's spikes, which is more akin to pre-pandemic seasonality.'�
The Office of National Statistics latest figures show rental prices paid by tenants in the UK rose by 4.2% in the 12 months to December, up from 4% in the 12 months to November.
The East Midlands saw the highest annual percentage change in prices in 2022 (5%), while the North East and the South East saw the lowest (3.8%).
Read more about Foxtons' housing data.