Housing pressures in London have become ‘unmanageable’ due to a sharp fall in private rental listings that is worsening near-record levels of homelessness, according to new research.
The research, which was carried out by the LSE and Savills, found that the number of London properties available for private rent has dropped by 41% since the Covid-19 pandemic.
It also found that rental prices listed by London landlords have increased by 20% since March 2020.
London Councils, who led a partnership that commissioned the research, said that supply constraints and ‘skyrocketing’ rents were compounding the challenges faced by low-income households seeking affordable accommodation and by London boroughs working to prevent homelessness.
The cross-party group has estimated that 166,000 Londoners are homeless and living in temporary accommodation arranged by their local borough.
It said that, on current trends, London would see its highest ever number of homeless households in temporary accommodation by the end of the summer.
Cllr Darren Rodwell, London Councils’ executive member for regeneration, housing and planning, said: ‘This research is the latest evidence of how the capital’s broken housing market is worsening the unsustainable and increasingly unmanageable pressures we face in London.
‘A bad situation is now becoming disastrous. We’re seeing fast-rising private rents and reduced availability of rental properties against a backdrop of continuing cost-of-living pressures and London’s longstanding shortage of affordable housing.
‘Homelessness is a national emergency but with London accounting for two-thirds of England’s temporary accommodation placements we are at the epicentre of this crisis. Urgent action is needed from the government to help households avoid homelessness and to reduce the number in temporary accommodation.’
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