Fewer than 3% of London rental homes available
The latest research from Benham and Reeves has found that fewer than 3% of London’s private rental homes are currently available to tenants, highlighting the severe lack of supply across the capital at a time when further legislative changes could place additional strain on supply within the sector.
Benham and Reeves analysed current rental market listings across London, before comparing these figures to the total level of private rental stock within each borough, in order to understand just how much of the capital’s rental market is actually accessible to prospective tenants at any one time.
The research shows that of the 1,188,368 estimated private rental homes across London, just 34,776 are currently listed on the market, equivalent to only 2.9% of total stock.
When analysing the figures at borough level, the research by Benham and Reeves reveals just how constrained supply is in many areas of the London rental market.
The lowest levels of rental property availability is currently found in boroughs such as Waltham Forest and Enfield (1.3%), followed by Barking and Dagenham (1.4%), Havering and Redbridge (1.5%), and Bexley, Hackney and Haringey (1.6%).
More widely, the majority of boroughs see availability sit at around 2% or below, including Newham (2.0%), Lewisham (1.8%) and Bromley and Sutton (both 1.7%), highlighting just how limited rental choice is for tenants across much of London.
At the other end of the table, Kensington and Chelsea boasts the highest proportion of private rental stock currently available to tenants, but even then fewer than one in ten homes are on the market at just 8.4%, followed by Westminster at 7.4%.
Director of Benham and Reeves, Marc von Grundherr, commented:
“Rental market supply will always ebb and flow and we are seeing some boost to stock, most notably via the continued expansion of the build-to-rent sector. However, the reality is that those searching for a rental home in London face an incredibly tough task, with only a minute proportion of total stock actually available to new tenants at any one time.
It’s this imbalance that continues to drive long waiting lists, increasingly desperate tenant tactics such as paying six to twelve months’ rent upfront, and the sustained upward pressure on rental values across the capital.
With some of the more significant changes introduced via the Renters’ Rights Act on the horizon, there is a real risk that more landlords will look to exit the sector altogether, which will only serve to further restrict supply and intensify the rental crisis facing London’s tenants.”
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