This is according to official data and National Residential Landlords Association (NRLA) is warning that, without action to tackle the supply problem, renters will see their housing choices reduced even further.

According to Government data, the number of homes in the private rented sector in London fell by 6% between 2023 and 2024. An analysis for London councils and Trust for London has warned that properties are leaving the rental market at a much faster rate in the most affordable locations in the capital.

The drop in supply comes despite an average of eight people enquiring about each home for rent in London, according to property portal Rightmove.

Demand is only set to remain strong, given the limited private rented housing available. Official data shows that waiting lists for social housing in London are at their highest for a decade.

And the capital is now the only region across the country where the number of first-time buyers has fallen over the past ten years according to Halifax.

The mismatch between supply and demand in London’s rental market is driving up rents and reducing tenant choice, particularly for low-income renters.

London needs more homes for social rent and homeownership. But the NRLA insists that the city’s housing crisis will not be solved without a significant boost to the supply of new, high quality private rented accommodation.

The NRLA is demanding tax reform to encourage the supply of new homes to rent. This could include scrapping the 5% stamp duty levy on homes to rent where a landlord brings one of the over 38,000 long-term empty homes in the capital back into use.

A quicker justice system. When Section 21 ‘no explanation’ repossessions are abolished, responsible landlords need assurance that the courts will process, and enforce, legitimate possession cases more swiftly than at present.

And a financial package to support investment in energy efficiency upgrades as the Government considers new minimum energy efficiency standards for the private rental market.

Commenting NRLA chief executive Ben Beadle said: “London needs more of all types of housing, and that has to include homes for private rent. It’s high time for policies that support investment in the homes renters desperately need.”