Fewer than 3% of London’s private rental homes are currently available to tenants, highlighting the scale of the supply shortage across the capital as the sector braces for further regulation under the Renters’ Rights Act.
Research from Benham and Reeves found that just 34,776 properties are currently listed to rent out of an estimated 1,188,368 private rented homes in London – equivalent to only 2.9% of total stock.
The figures suggest that at any given time only a tiny proportion of the capital’s rental market is accessible to tenants, with availability even tighter in many outer boroughs.
Supply is most restricted in Waltham Forest and Enfield, where just 1.3% of rental homes are on the market, followed by Barking and Dagenham at 1.4%, Havering and Redbridge at 1.5%, and Bexley, Hackney and Haringey at 1.6%.
LOW AVAILABILITY
Across much of London, availability sits at around 2% or below, including Newham at 2.0%, Lewisham at 1.8% and both Bromley and Sutton at 1.7%, highlighting the limited choice facing tenants across large parts of the capital.
Even in prime central areas, supply remains tight. Kensington and Chelsea has the highest proportion of available rental stock, but still only 8.4% of homes are on the market, followed by Westminster at 7.4%.
SUPPLY AND DEMAND IMBLANCE
Marc von Grundherr (main picture), Director of Benham and Reeves, says that the imbalance between supply and demand continues to drive higher rents and more extreme behaviour from tenants.
“Rental market supply will always ebb and flow and we are seeing some boost to stock, most notably via the continued expansion of the build-to-rent sector. However, the reality is that those searching for a rental home in London face an incredibly tough task, with only a minute proportion of total stock actually available to new tenants at any one time.”
LANDLORD EXIT RISK
And he adds: “It’s this imbalance that continues to drive long waiting lists, increasingly desperate tenant tactics such as paying six to twelve months’ rent upfront, and the sustained upward pressure on rental values across the capital.
“With some of the more significant changes introduced via the Renters’ Rights Act on the horizon, there is a real risk that more landlords will look to exit the sector altogether, which will only serve to further restrict supply and intensify the rental crisis facing London’s tenants.”
