Despite growing demand, the number of homes for private rent is declining.
This is according to official data and the National Residential Landlords Association (NRLA) warns that without action to address supply issues, renters will see their housing options erode further.
According to government data, the number of homes in London’s private rental sector fell by 6% between 2023 and 2024. Analysis by the London Parliament and London Trust has warned that real estate will leave the rental market at a faster pace in the capital’s most affordable locations.
Although an average of eight people are asking about all available home rents in London, supply has fallen, according to real estate portal Rightmove.
Demand can only remain strong given limited private housing. Official data shows that London’s social housing waiting list has the highest in a decade.
The capital has been the only region in the country with the decline in first-time home buyers in the past decade, according to Halifax.
A mismatch between supply and demand in the London rental market is driving rent and reducing tenant choices, especially for low-income tenants.
London needs more social rents and home ownership. But the NRLA insists that the city’s housing crisis will not be resolved without the obvious promotion of new high-quality private accommodation.
The NRLA calls for tax reforms to encourage the supply of new homes for rent. This could include levying rent on a 5% stamp duty on a home, and landlords reuse one of the capital’s more than 38,000 long-term vacant homes.
Faster justice system. When the listening of Article 21 “No interpretation” is cancelled, the responsible landlord needs to ensure that the court will handle and enforce legal property cases faster than it is currently available.
and a financial plan to support investment in energy efficiency upgrades as the government considers new minimum energy efficiency standards for the private rental market.
NRLA CEO Ben Beadle commented: “London needs more types of housing, which must include houses with private rent. It’s time to adopt policies to support investments that are urgently needed in the housing sector.”
