Renters may face the biggest challenges finding a home in parts of outer London where properties for sale significantly outnumber rental listings.
Research by Benham and Reeves analysing current residential listings across the capital shows that only 32.4% of homes on the market are available to rent. Of around 109,060 properties listed for sale or rent, just 35,324 are rental homes.
The imbalance is most pronounced in several south and east London boroughs where the majority of available homes are for sale rather than rent.
Bromley shows the greatest disparity, with 84.8% of current listings for sale and just 15.2% available to rent. Bexley follows with rentals accounting for only 17.3% of the market.
LIMITED SUPPLY
Other boroughs with limited rental supply include Havering (18%), Sutton (18.8%), Enfield (23.2%), Croydon (24%), Greenwich (24.5%) and Lewisham (25%).
By contrast, prime central boroughs tend to offer a far more balanced split between rental and sales stock.
Kensington & Chelsea is the most balanced market, with 50.9% of listings for sale and 49.1% for rent. Westminster also has a strong rental presence, with rental homes accounting for 47.4% of listings, followed by Camden (44.1%), Islington (40.2%) and Tower Hamlets (38.3%).
LOCALISED MARKETS
Marc von Grundherr (main picture, inset), Director at Benham and Reeves, says: “The London market is rarely uniform and these figures highlight just how localised the balance between sales and lettings has become.
“In many of the capital’s more leafy and less densely populated southern boroughs, such as Bromley and Bexley, we’re seeing strong buyer demand, particularly from young families looking for more space, good schools and access to green areas. These markets naturally lean more heavily towards homes for sale, as they attract longer term owner occupiers who are putting down roots rather than short-term renters.
DIVERSE LANDSCAPE
He adds: “At the same time, the lower rental stock levels mean that those properties that are available command strong rental values and yields for buy-to-let investors.
“By contrast, the more compact, higher value central and northern boroughs serve a different audience. Areas such as Kensington and Chelsea, Westminster, Camden and Islington remain magnets for young professional renters who want to be close to employment hubs and lifestyle amenities, as well as for affluent domestic and international buyers.
“What this really underlines is the diversity of London’s housing landscape. Demand profiles shift significantly from one borough to the next, shaped by affordability, property type, transport links and local amenities.
“For renters in some outer boroughs, the current imbalance does make the search more challenging, while in prime central locations the depth of rental stock reflects the needs of a more transient and globally mobile population.”
