Dropping private rental listings significantly observed in London's real estate market, according to recent studies
In a startling revelation, a new report commissioned by London Councils reveals that London is currently grappling with a severe housing crisis, with homelessness reaching alarming proportions. The report, titled the 'Housing Design Audit,' was conducted by the London School of Economics (LSE) and real estate consultancy firm Savills.
According to the findings, London accounts for two-thirds of England's temporary accommodation placements, indicating a national emergency. London Councils estimates that 166,000 Londoners are homeless and living in temporary accommodation arranged by their local borough. This number is expected to reach its highest ever by the end of the summer, given current trends.
The situation is further exacerbated by the decline in rental properties. The number of properties available for private rent in London has fallen by 41% since the pandemic, with a more pronounced drop compared to the national average of 33%. The decline is particularly noticeable in the listings for four-bedroom properties, which have decreased by 46.6%.
This scarcity of affordable housing is a significant concern for the eligible households receiving Local Housing Allowance (LHA) as part of their housing benefit or Universal Credit payment if they have a private landlord. The report shows that only 2.3% of London listings on Rightmove in 2022-23 were affordable to those using the benefit to pay their rent, down from 18.9% in 2020-21.
The government's decision to freeze LHA rates since April 2020 has significantly reduced the number of properties affordable in London under LHA. London Councils and its partners are urging ministers to raise LHA to cover at least 30% of local market rents to alleviate this issue.
The report also highlights the issue of fast-rising private rents, reduced availability of rental properties, and continuing cost-of-living pressures in London. London Councils' executive member for housing, Darren Rodwell, stated that the current situation is worsening the housing market pressures in London and is becoming disastrous.
In response to these challenges, urgent action is needed from the government to help households avoid homelessness and reduce the number in temporary accommodation. The report underscores the need for a comprehensive strategy to address the city's housing crisis, ensuring affordable and sustainable housing for all Londoners.
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