Industry News
Private rental listings in London fall sharply by 41%
R
esearch has revealed a 41% reduction in the number of properties available for private rent in London since the Covid-19
pandemic, giving rise to warnings that the rental market is worsening with near-record levels of homelessness across the capital. Te analysis – which represents the most
comprehensive study yet published of London’s private rental market and its relationship to homelessness pressures – was undertaken jointly by the LSE and Savills and commissioned by a partnership led by the cross-party group London Councils. London’s buy-to-let market is contracting as
landlords exit the sector which, coupled with the freeze to the Local Housing Allowance (LHA) and skyrocketing rents, is compounding the challenges faced by low-income households seeking affordable accommodation and by London boroughs working to prevent homelessness. London Councils and the report’s co-funders
(Trust for London, Capital Letters, and the London Housing Directors’ Group) say the research is the latest evidence of London’s broken housing market and the need for urgent Government action to address rising homelessness. London Councils estimates that 166,000
Londoners are homeless and living in temporary accommodation arranged by their local borough. Tis figure is equivalent to the entire population of some London boroughs or a city the size of Blackburn or Oxford. On current trends, London will see its highest
ever number of homeless households in temporary accommodation by the end of the summer. With boroughs in the capital collectively spending more than £52m each month on temporary accommodation and suitable accommodation for
homeless households increasingly scarce, London Councils has branded the situation “unmanageable”. Key findings from the LSE and Savills research include: • Rental listings have fallen across London, with the number of one, two, and three- bedroom properties listed for rent in both inner and outer London down by around 36% since the pandemic (comparing January-March 2023 to the January-March average across 2017-19);
•
Listings for four-bedroom properties declined the most. Over the same period, listings of four-bedroom properties almost halved (46.6%);
• Across, one, two, three and four-bedroom properties the overall reduction is 41% down on the 2017-19 average. Tis reduction in the availability of private rental accommodation is higher in London, compared to a fall of 33% nationally;
• At the same time, rental prices listed by London landlords (the ‘asking rents’) are 20% above their pre-Covid level in March 2020; and
• Te buy-to-let market is contracting nationally and more private landlords in London are reducing rather than growing their portfolios. Te number of rental properties being advertised for sale has more than doubled since the pandemic, and the proportion is rising. Tis has a clear impact on low- income households looking to rent, and on boroughs seeking temporary accommodation for homeless residents.
Te researchers also investigated affordability for the 300,000 London households reliant on Local Housing Allowance (LHA) to meet their housing costs. Eligible households receive LHA as part of their housing benefit or Universal Credit payment if they have a private landlord, and the Government has frozen LHA rates since April 2020. In the face of fast-rising rents, the decision to
keep LHA rates frozen has significantly reduced the number of properties affordable in London under LHA. Only 2.3% of London listings on Rightmove in 2022/23 were affordable to those using the benefit to pay their rent, falling from 18.9% in 2020/21. London Councils and its partners are calling
on ministers to take further measures to help low-income renters meet their housing costs and address homelessness pressures, including by raising LHA to cover at least 30% of local market rents and boosting investment in building more affordable homes. Councillor Darren Rodwell, London Councils’
Executive Member for Regeneration, Housing & Planning, said: “Tis research is the latest evidence of how the capital’s broken housing market is worsening the unsustainable and increasingly unmanageable pressures we face in London.” “A bad situation is now becoming disastrous.
We’re seeing fast-rising private rents and reduced availability of rental properties against a backdrop of continuing cost-of-living pressures and London’s longstanding shortage of affordable housing.” “Homelessness is a national emergency but with
London accounting for two-thirds of England’s temporary accommodation placements we are at the epicentre of this crisis. Urgent action is needed from the Government to help households avoid homelessness and to reduce the number in temporary accommodation.”
Ombudsman praises three landlords for good practice
Te Housing Ombudsman has highlighted good practice at three social landlords and has encouraged other landlords to learn from such examples to help extend fairness across the social housing sector. Newham Council, LiveWest and Birmingham
City Council have all been praised for their responses to issues faced by tenants, including anti- social behaviour and disrepair. LiveWest was praised for its response aſter a
ceiling collapsed in one of its homes. It responded within 24 hours of being notified, moved the family out of the home and then raised the damage with its insurers and carried out inspections. While the family was away, the landlord went
above and beyond to salvage their possessions and provide furnishing. LiveWest also offered appropriate compensation to the family for the distress and inconvenience. Birmingham City Council was found to have
acted in accordance with its anti-social behaviour policy. Te landlord escalated its actions with the alleged perpetrator when new evidence came to light and responded immediately to any new reports of ASB. “It then showed effective use of other tools such
as setting up mediation and working with third parties such as the police,” the ombudsman said. Newham Council was praised for its initial
response to reports of damp and mould. When the 12 | HMMAugust/September 2023 |
www.housingmmonline.co.uk
issue was first reported, the council did prompt surveys and carried out multiple repairs to try to resolve the problem. Te ombudsman said: “It then followed this
up by using different surveyors to ensure independent findings showing how landlords can achieve an effective diagnosis by engaging with the right expertise.” Richard Blakeway, the housing ombudsman,
said: “Every month we share cases where we have found landlords responding well to complaints to provide learning across the sector. Oſten these cases demonstrate prompt action, fulfilling commitments made and maintaining effective records so the landlord knows what it did, when and why. “
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