"The shortage of homes to rent is a one-way street toward higher rents and even less choice for tenants"
- Ben Beadle - NRLA
The number of private rental properties available in London has declined significantly, according to new data, with demand far outstripping supply and mounting pressure on renters across the capital.
Government figures show that the size of London’s private rented sector fell by 6% between 2023 and 2024. A separate analysis conducted for London Councils and Trust for London suggests that properties are disappearing from the rental market fastest in the most affordable areas, compounding housing difficulties for lower-income tenants.
Despite fewer available homes, demand continues to grow. Rightmove data reveals that an average of eight people enquire about every home listed for rent in London, placing further strain on an already stretched market.
Social housing waiting lists in the capital have now reached a 10-year high, according to official statistics. At the same time, London is the only region in the UK to see a fall in first-time buyer numbers over the past decade, based on research by Halifax.
With fewer housing alternatives, London renters are facing higher rents and fewer choices. The data compiled for London Councils and Trust for London shows that just 5% of privately rented properties in the capital are affordable for those receiving housing benefit. The supply gap is also affecting renters' ability to report or take action against rogue or criminal landlords, with limited alternative accommodation options available.
The National Residential Landlords Association (NRLA) argues that the housing crisis in London cannot be solved without increasing the volume of quality homes to rent in the private sector, alongside additional support for social housing and homeownership.
The NRLA is urging government action in several key areas:
Tax reform: The association proposes scrapping the 5% stamp duty surcharge for landlords who bring one of the 38,000+ long-term empty homes in London back into use, as a way to boost overall housing supply.
Faster court processes: With the planned abolition of Section 21 ‘no explanation’ evictions, the NRLA is calling for urgent reforms to ensure legitimate possession claims are dealt with swiftly. Official data shows that it currently takes more than six months for courts to process and enforce a valid possession order, including cases involving serious rent arrears or disruptive tenant behaviour.
Support for energy upgrades: As the government considers setting new minimum energy efficiency standards, the NRLA is calling for financial support packages to help landlords invest in energy improvements.
“Private renters across London are facing the brunt of the housing crisis,” said Ben Beadle, chief executive of the National Residential Landlords Association. “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,” Beadle added. “It’s high time for policies that support investment in the homes renters desperately need.”
