Tenants were warned about another surge in rents in London as new figures showed the number of homes being made available by landlords is rapidly falling.
Latest Government data showed the number of homes in the private sector in London fell 6% from 1.14 million to 1.07 million between 2023 and 2024 despite growing demand. On current trends it could fall below the one million mark next year.
Meanwhile an analysis for London Councils and Trust for London has warned that properties are leaving the rental market at a much faster rate in the most affordable locations in the capital.
The slump in supply comes despite an average of eight people enquiring about every available home to rent in London, according to property portal Rightmove.
The mismatch between supply and demand in London’s rental market is driving up rents and reducing tenant choice, particularly for low-income renters, according to the National Residential Landlords Association (NRLA).
It is calling for tax reform to encourage the supply of new homes to rent that add to London’s overall housing stock, including scrapping the 5% stamp duty surcharge on homes to rent where a landlord brings one of the over 38,000 long-term empty homes in the capital back into use.
It also wants quicker justice system so that when Section 21 ‘no explanation’ repossessions are abolished, responsible landlords need assurance that the courts will process, and enforce, legitimate possession cases more swiftly than at present.
Official data shows it takes an average of over six months from the point a legitimate possession claim by a private landlord is accepted for consideration by the courts through to it being enforced. This includes cases related to serious rent arrears or tenant anti-social behaviour causing misery for neighbours and fellow tenants alike.
Thirdly the NRLA has demanded a financial package to support investment in energy efficiency upgrades as the Government considers new minimum energy efficiency standards for the private rental market.
Ben Beadle, chief executive of the NRLA, said: “Private renters across London are facing the brunt of the housing crisis. The shortage of homes to rent is a one-way street toward higher rents and even less choice for tenants.
“London needs more of all types of housing, and that has to include homes for private rent. It’s high time for policies that support investment in the homes renters desperately need.”
