"The reality is that those searching for a rental home in London face an incredibly tough task, with only a minute proportion of the total stock actually available to new tenants at any one time"
- Marc von Grundherr - Benham and Reeves
Rental supply in London is at critically low levels, with fewer than 3% of private rental homes currently available, according to research by Benham and Reeves. The findings highlight severe constraints on the capital’s rental market at a time when upcoming legislation could place further strain on supply.
The analysis compared current rental listings across London with total private rental stock in each borough, revealing the proportion of homes accessible to prospective tenants. Of an estimated 1,188,368 private rental homes, only 34,776 are actively listed, equivalent to just 2.9% of the total stock.
Borough-level supply constraints
Some areas of London are experiencing particularly acute shortages:
- Waltham Forest and Enfield: 1.3%
- Barking and Dagenham: 1.4%
- Havering and Redbridge: 1.5%
- Bexley, Hackney and Haringey: 1.6%
Across much of the capital, availability sits at around 2% or below, including:
- Newham: 2.0%
- Lewisham: 1.8%
- Bromley and Sutton: 1.7%
Even in boroughs with higher supply, rental choice is limited. Kensington and Chelsea has the highest proportion of stock available at 8.4%, followed by Westminster at 7.4%.
Impact on tenants and the UK property market
Marc von Grundherr, director of the agency, said, “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 the 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.”
The research underscores the challenges for tenants, landlords, and investors alike, as low availability increases competition for rental homes, drives rents higher, and could influence landlord decisions about whether to continue in the market.
