London housing shortage will cause ‘crippling rise in costs’ for renters without thousands of new homes

The report warns that young tenants in London will face rising housing costs and severe shortages unless there is a significant increase in private rented accommodation. London has 29 percent of all homes in the UK and has the largest private rented sector. The majority of homes are provided by individual landlords. However, the “build-to-rent” sector still provides 69,000 homes across the UK. It concludes that “Regardless of whether or not the government achieves its housebuilding target, more PRS stocks will be required to meet demand and improve functioning of the housing market. It will meet the demand for housing for those who can’t afford it, those living with their parents, those living in overcrowded households, those in poor conditions, or those who are homeless. There are also mismatches between supply and demand. More PRS stock will help to correct these imbalances and lower rents. According to Rightmove, rents in London are already at an all-time high. Tenants report a lack of supply and a chronic shortage of tenants as young people return to London after work from home. According to Rightmove figures, they hit an all-time high of GBP2,142 per monthly in January. The report was commissioned by Ben Beadle, chief executive at the National Residential Landlords Association. He stated that as the demand for rental properties increases following the pandemic, tenants across the capital will have difficulty finding the homes they want and need. “Despite all the efforts to support homeownership the private rented sector still has a vital role in housing so many Londoners. “Today’s analysis shows the folly of Mayor Bloomberg’s calls to rent controls in the capital. This policy would only serve to freeze investment in the very homes that renters require.