Propertymark warns London cannot tackle housing shortage without PRS

An industry has called for the private rented sector to play a bigger role in tackling London’s housing shortage.

Propertymark’s call comes in response to Mayor Sadiq Khan’s London Plan, which aims to provide capacity for around 558,000 new homes between 2027/28 and 2036/37, with 50% of homes to be genuinely affordable over the longer term.

While the plan gives Build to Rent a prominent role, Propertymark argues that the wider private rented sector must also be recognised as a key part of tackling London’s housing crisis.

London landlords leaving the market

In response to the consultation, Propertymark warns build to rent should not be treated as a complete replacement for the traditional landlord operating in the PRS.

The industry body said: “Propertymark members are seeing private landlords leave the market in London, including in areas where there is already strong rental demand, while Build to Rent tends to operate at a different scale and can serve different parts of the market.

“We think the Plan should therefore monitor the overall supply of rented homes, not simply the growth of Build to Rent. It should also consider rents, service charges and the range of households actually able to access these homes.”

Propertymark says bringing empty homes back into use could help ease London’s housing shortage, but warns that this is not always straightforward.

The industry body warns that ownership disputes and financial barriers can complicate efforts to bring empty homes back into use, while stretched council budgets can leave local authorities without the staff and resources needed to tackle the problem.

Frozen LHA rates

The industry body also warns that frozen Local Housing Allowance (LHA) rates are making it harder to provide affordable homes,

Propertymark said in the consultation: “We support the need for more genuinely affordable and social housing. However, the policy needs to take greater account of the financial reality of development.

“Affordability should be considered against local incomes, rents, Local Housing Allowance levels, service charges and the wider cost of living. Members report particularly strong pressure in parts of East London where there is a shortage of properties available within Local Housing Allowance levels.”