A 71% fall in supply of rental homes in London over 12 months
Rental property stock in London has fallen by 71% in the past 12 months, the latest data by ARLA Propertymark reveals.
According to the latest research data, rental supply in London has plummeted by 71% in the past 12 months, driven by landlords leaving London during the challenging pandemic.
In turn, the number of prospective renters has reached record high levels for December – 67 tenants per branch.
The rental property market in London and the UK
As for the regional performance, the West Midlands outperformed any other area, with the average number of renters per branch reaching 106 in December 2021. On the other side of the league table is Wales, with a similar figure standing at 21.
The number of managed rental homes per branch fell slightly from 212 to 204 last month, which is in line with the year-on-year (YoY) average. In December 2020, the figure likewise reached 204. Humberside saw the highest number of rental homes managed per member agent branch – 313 properties.
Not surprisingly, London saw the lowest levels of rental supply, with the number of rental properties managed per member branch reaching just 131. Moreover, the number of available properties plummeted to 4 per member branch, a 71% fall from December 2020 when the similar number reached 14.
Nathan Emerson of Propertymark points out a typical slowdown in December. But the demand was unusually buoyant when compared against the average.
In 2021, landlords faced several challenges, including new policy and rising house prices, and decided to consider other options. The market must attract new landlords who will provide much-needed rental homes.
The pandemic has uniquely affected the London rental market, with many residents leaving the capital as working conditions changed. We are seeing a return of people into London now, but the lack of rental properties drives the prices up and puts extra pressure on the social housing infrastructure.