London Landlords Warn of Higher Rents as Rental Homes Dwindle

Landlords in London warn of higher rents due to a rapid decline in available homes, with the number of properties in the private sector falling 6% to 1.07 million in 2023-2024. The shortage of homes has led to a mismatch between supply and demand, driving up rents and reducing tenant choice, particularly for low-income renters. The National Residential Landlords Association is calling for tax reform and quicker court processing to encourage the supply of new homes to rent.

Landlords in London have expressed concerns over a rapid decline in available homes, with the number of properties in the private sector falling 6% to 1.07 million in 2023-2024. This significant decrease in supply has led to a mismatch between supply and demand, driving up rents and reducing tenant choice, particularly for low-income renters. The National Residential Landlords Association (NRLA) has called for tax reform and quicker court processing to encourage the supply of new homes to rent.

The latest Government data shows that the number of homes in the private sector in London fell from 1.14 million to 1.07 million between 2023 and 2024, despite growing demand [2]. This trend is likely to continue, with the number of available homes potentially falling below one million next year. The NRLA has warned that the rapid decline in supply is particularly pronounced in the most affordable locations in the capital, further exacerbating the housing crisis [2].

The mismatch between supply and demand has led to an increase in rents. According to the NRLA, the supply of new properties has been weak, keeping prices high and out of reach for many young Britons trying to get a foot on the housing ladder. The Labour government has vowed to build 1.5 million new homes over the next five years by overhauling the planning system, but progress has been slow [1].

The NRLA has called for several policy changes to address the housing shortage. These include scrapping the 5% stamp duty surcharge on homes to rent where a landlord brings one of the over 38,000 long-term empty homes in the capital back into use. The NRLA also wants quicker justice system processing to ensure that legitimate possession cases are handled swiftly. Additionally, the NRLA has demanded a financial package to support investment in energy efficiency upgrades as the Government considers new minimum energy efficiency standards for the private rental market [2].

The housing market in London remains challenging, with rents remaining elevated despite the slowdown in increases. Average private rents in the capital rose 7.3% year-on-year in June to £2,252 ($3,016.9) per month, the lowest since April 2023 [1]. However, rents remain well above pre-pandemic levels, prolonging a cost-of-living crisis for many young Britons.

In conclusion, the rapid decline in available homes in London is driving up rents and reducing tenant choice. The NRLA's call for tax reform, quicker court processing, and investment in energy efficiency upgrades highlights the need for policy changes to address the housing shortage and support tenants.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-16/london-rent-increases-ease-to-the-slowest-in-over-two-years
[2] https://www.standard.co.uk/business/landlords-tenant-rents-london-homes-b1238523.html