The number of homes for private rent is contracting across London despite growing demand, warns the National Residential Landlords Association (NRLA).
And it says that without action to tackle the supply crisis, renters will see their housing choices eroded even further.
According to government data, the number of homes in the private rented sector in London fell by six per cent between 2023 and 2024. 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.
Demand is only set to remain strong for the limited private rented housing available. Official data shows that waiting lists for social housing in London are at their highest for a decade. Meanwhile, the capital is now the only region across the country where the number of first-time buyers has fallen over the past ten years according to Halifax.
The mismatch between supply and demand in London’s rental market is driving up rents and reducing tenant choice, particularly for low-income renters. Just five per cent of private rented homes in the capital are affordable for those in receipt of housing benefits according to the data produced for London Councils and Trust for London. The lack of alternative housing options is also making it harder for tenants to hold rogue and criminal landlords to account.
London needs more homes for social rent and homeownership. But the NRLA warns that the city’s housing crisis will not be solved without a significant boost to the supply of new, high quality private rented accommodation.
The NRLA is calling for:
· Tax reform to encourage the supply of new homes to rent that add to London’s overall housing stock. This could include scrapping the five per cent stamp duty levy on homes to rent where a landlord brings one of the over 38,000 long-term empty homes in the capital back into use.
· A quicker justice system. 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 half a year 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.
· A financial package to support investment in energy efficiency upgrades as the Government considers new minimum energy efficiency standards for the private rental market.
Association chief executive Ben Beadle says: “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.”
This article is taken from Landlord Today