Research conducted by letting agent, Benham and Reeves has revealed that London tenants are facing a significant shortage of available rental properties, with a mere 4% of rental homes in the capital currently being offered for lease.

Benham and Reeves conducted their analysis of the rental market in London, examining the changes in stock availability and identifying boroughs with the lowest proportion of homes available for rent in relation to the total number of rental properties.

The research findings indicate that there are currently around 40,496 homes available for rent across London, which accounts for only 4% of the total 1,009,266 rental properties in the capital.

However, there has been a slight increase in stock levels, with a quarterly rise of 21% and an annual increase of 5%.

In Barking and Dagenham, for example, only 180 homes are listed for rental, representing just 1% of the total rental properties in the borough.

In other boroughs such as Newham, Haringey, Croydon, Havering, Bexley, Enfield, Redbridge, and Waltham Forest, the proportion of available rental properties stands at 2% of the total, increasing slightly to 3% in Ealing, Hounslow, Bromley, Brent, Hillingdon, Harrow, Sutton, and Lewisham.

In 12 additional boroughs, fewer than one in 10 rental homes are available to new tenants. Only Camden (10%), the City of London (11%), Kensington and Chelsea (12%), and Westminster (12%) have a higher percentage of rental properties available.

Marc von Grundherr, director of Benham and Reeves, commented on the situation, noting that while the sales market in London is experiencing slow growth, the rental sector has been witnessing high demand, resulting in a shortage of available properties. He stated that a return to normality has seen increased interest from professional tenants, students, and foreign renters, which has further contributed to the dwindling stock levels, making it challenging for new tenants to find suitable accommodation.

Von Grundherr added that the scarcity of available rental properties is particularly evident in the more affordable boroughs on the outskirts of the capital. However, even those with the financial means to rent in prime central London are likely to encounter difficulties.

He highlighted the overwhelming demand by mentioning that, on average, there are 37 applicants competing for each rental property that becomes available. Furthermore, landlords are now facing significantly higher monthly mortgage costs, which will inevitably lead to higher rents or potentially force landlords to exit the rental market, resulting in an even lower supply of properties.

While there has been a slight increase in the total number of available rental homes, it is insufficient to meet the current demand for rental properties in London, presenting a challenging situation for prospective tenants.