The National Residential Landlords Association (NRLA) has warned that the number of homes available to rent privately in London is falling sharply, with new data showing a 6% drop between 2023 and 2024 despite continued growth in tenant demand.
Government figures confirm the decline in private rental supply, while analysis for London Councils and Trust for London highlights that homes are exiting the rental market fastest in the capital’s most affordable areas.
According to Rightmove, each available rental property in London is now receiving interest from an average of eight prospective tenants.
With social housing waiting lists at their highest in a decade and homeownership becoming less accessible, demand for private rental homes continues to grow.
Halifax data shows London is now the only region in the UK where the number of first-time buyers has declined over the past 10 years.
Meanwhile, just 5% of private rented homes in the capital are deemed affordable for those receiving housing benefits.
The NRLA says this growing imbalance between demand and supply is driving up rents and limiting choice, particularly for low-income renters.
The lack of alternatives is also making it more difficult for tenants to challenge poor landlord behaviour.
To address the situation, the NRLA is calling for tax changes to incentivise landlords to return long-term empty homes to use, a faster court process for dealing with legitimate possession cases, and Government support to help fund energy efficiency improvements in rental properties.
Ben Beadle, chief executive of the National Residential Landlords Association, 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.
“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.”
