London’s rental drought eases with stock up by a third year-on-year

The number rental properties in Greater London has risen by 34.7 per cent in the last year, according to new research from London estate agents Benham & Reeves. 

Rental stock in the City is up by 43 per cent year-on-year. 

Country-wide available stock rose by 12 per cent year-on-year, to 154,510 rental properties.

While the increase in London stock will be “warmly welcomed by those who are still on the hunt” it is unfortunately “unlikely to balance the scales”, Director of Benham and Reeves, Marc von Grundherr, said.

“The London rental market remains an extremely competitive place and we’re seeing huge demand for homes right from the point they are reaching the market, with tenants falling over themselves to view and apply,” Grundherr said.

There were 45,200 flats available to rent in Greater London in the first quarter of 2024, up from 33,562 in the same period last year, Benham & Reeves said. 

Rents in the capital seem to have peaked in February, after rising around 30 per cent in the last two years. 

Rents cooled further in April, increasing hopes that the crisis in the capital may finally be waning. 

Those hoping for a return to old rent prices, though, may be disappointed. 

“As we approach the busy summer period, we expect recruitment drives in London’s companies to boost lettings activity,” Gareth Atkins, managing director of lettings at Foxtons, said. 

“However, average rent prices are likely to stay flat due to affordability pressures, helping more renters secure homes in the capital,” Atkins added. 

“As it stands, we’re still seeing some of the lowest rental stock levels that we have had in the last decade and, as a result, we’re receiving an average of 21 applicants per listing within just 24 hours of a property going live” Grundherr said.