London’s renters face fewer homes and higher rents – NRLA

London’s private rental market is shrinking rapidly, leaving tenants with fewer options and higher rents, the National Residential Landlords Association (NRLA) is warning.

It points to government figures which reveal a 6% drop in private rental properties in the capital from 2023 to 2024, even as tenant demand continues to surge.

That data contradicts yesterday’s story from Foxtons which highlights an 18% rise in new listings for May.

The NRLA also says that research for London Councils and Trust for London highlights that affordable areas are losing rental homes at an alarming rate.

Now the organisation says that solving London’s housing shortage requires a huge increase in private rental properties alongside more social housing and homeownership opportunities.

London tenants face a crisis

The NRLA’s chief executive, Ben Beadle, 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.”

He added: “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.”

London’s shrinking PRS

News that the capital’s PRS is shrinking comes as Rightmove reports an average of eight prospective tenants competing for each available property.

The intense demand is pushing rents up and limiting choices, particularly for low-income households.

Only 5% of private rentals in London are affordable for those relying on housing benefits, the data shows.

The crisis is compounded by a lack of alternatives with social housing waiting lists in London reaching their highest level in a decade.

Also, Halifax notes that the capital is the only UK region where first-time buyer numbers have dropped over the past 10 years.

This scarcity leaves tenants, especially those on lower incomes, with little leverage to challenge unscrupulous landlords.

Tax reforms for landlords

To address the crisis, the NRLA says that tax reforms, such as eliminating the 5% stamp duty surcharge on rental properties, are needed if landlords bring one of the capital’s 38,000 long-term vacant homes back into use.

It is also urging faster court processes for legitimate landlord possession cases, as current delays average over six months for issues like severe rent arrears or tenant anti-social behaviour.

The NRLA also wants financial support for energy efficiency upgrades to meet the impending government standards for rental properties.