Lettings Market – Renter Profiles 2023

By on Wednesday, January 17th, 2024 in Lettings, Market Trends, Research.

RENTER PROFILES 2023

Lettings Market – Renter Profiles 2023

Renters from the Far East represented 25% of all new lets at our offices in 2023, significantly higher than the average of 16% recorded between 2015 and 2023.  British renters made up a similar proportion (also 25%) compared to a long-term average of 31%. Renters from European nations have always been a dominant component in our markets and they made up 31% of new lets in 2023 only slightly down on 34% over the longer term.  

Other nationalities accounted for around 20% of new lets between them and their individual contributions to the total this year have been broadly in line with the average over the period 2015-2023.

Lettings Market – Renter Profiles 2023

The breakdown by ‘occupation’ highlights the key role of students in our markets at 28% of all new lets and the highest single category.  This is always the case in our markets and the long term average was similar at 25% of the total. 

The Banking/Finance sector also underpins demand for rental in our markets accounting for 25% this year and a similar proportion over the longer term.  People employed by the Tech sector are also an important source of demand making up 13% this year compared with 10% over the longer term. 

Lettings Market – Renter Profiles 2023

There is always a substantial difference in the age breakdown between the first and second half of any year because of the dominance of student renters in Q3.  Over the whole year, under 25s made up 35% of all new rentals in our markets in 2023, although their share in half 1 was only 19% (meaning the Half 2 share was much higher than 35%).  

The 2023 stat is significantly above the long term average (of 27%) and reflects two things: the return of overseas students to London post-pandemic as well as an increase in the number of students. The corresponding fall compared to the long term average was in the next age group 25-40 years old, which is still dominant at 56% of new lets but down on the average of 63%.

Lettings Market – Renter Profiles 2023

There are very few families renting in our markets and only 4% of new lets were to families.  Of the other three household categories, sharers were the most prominent accounting for 39% of new lets.  That is an increase on the longer term average (33%) and probably reflects the rising cost of renting and other costs of living this year.  In our experience, young renters will often choose to sacrifice living space rather than a central location and that would explain the rise in the number of sharer households. 

Lettings Market – Renter Profiles 2023
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