THE AMOUNT Londoners fork out on rent grew 12 per cent year-on-year in July, new figures show, topping £597 per week.

According to data from London estate agent Foxtons, July saw an average of 21 rental applicants per new home arriving on the market, an 18 per cent increase month-on-month, though a 12 per cent decrease when compared to 2022.

In recent months, a cocktail of shrinking supply and rising living costs has led landlords to increase the rent on their properties.

Red hot mortgage rates have also led many owners to sell their homes, meaning more tenants are competing to secure a place to rent.

"The ferocious run-up in rents in recent history exert an unwelcome strain on the already precarious financial situations of many amid the cost of living storm," Myron Jobson, senior personal finance analyst at Interactive Investor, told City A.M.

"Those with modest incomes have found themselves wrestling with escalating rental costs, forcing them to sacrifice a sizeable portion of their hardearned income to keep a roof over their heads. This leaves them with less money for other essential needs or even to indulge in discretionary spending."

Others suggested the market was cooling slightly.

"Price increases in the lettings market are less extreme than we saw last year," Gareth Atkins, managing director of lettings at Foxtons, said.

(c) 2023 City A.M., source Newspaper