Legal News

A stark 41% decrease in available private rentals since the start of the Covid-19 outbreak highlights the growing issues in London's housing market. Recent research carried out by the London School of Economics (LSE) and Savills presents a sombre picture of a city facing a housing catastrophe.

Alarmingly, the research found that rental availability has dramatically declined, and costs of renting have shot 20% higher than before the pandemic began. Properties with four or more bedrooms are particularly affected, with a startling 46.6% reduction in postings. With fewer renting alternatives available, low-income households are under unprecedented stress, and the number of homeless people in the capital has dramatically increased.

An estimated 166,000 Londoners are currently homeless and dependent on short-term housing provided by their neighbourhood councils. Each month, this worsening situation places a financial burden of over £52 million on local councils. If the current trends continue, predictions show that these numbers may reach unprecedented heights by the end of the summer.

The scenario was described as "disastrous" by Councillor Darren Rodwell, executive member for regeneration, housing, and planning at London Councils. He said: "homelessness is a national emergency," and "we are at the centre of this crisis with London responsible for two-thirds of England's temporary housing placements."

The study also emphasised the increasing financial strain on the 300,000 households in London that depend on the Local Housing Allowance (LHA) to pay their rent. Even though rents are rising, the LHA has been frozen since April 2020, making just 2.3% of London listings affordable for such households in 2022–33, a significant decrease from 18.9% in 2020–21.

There is a significant link between the declining supply of rental homes and the increasing migration of landlords from the private rented sector (PRS). London's private rented market, which houses more than one million families, is highly dependent on private landlords, according to Savills director Abigail Davies. Due to the triple trifecta of higher rates of borrowing, increased tax exposure, and regulatory changes, many businesses are leaving the market, “putting downwards pressure on supply against ever-rising tenant demand."

The Renters' Reform Bill, which is currently being discussed in Parliament, gives tenants some hope for better circumstances by prohibiting no-fault evictions. The London Councils and their partners, however, contend that this falls short of the systemic changes required to address the growing rate of homelessness and assist low-income tenants in covering housing expenses.

They call on the government to enhance the LHA so that it covers at least 30% of the local market rentals and to increase funding for the development of affordable housing.

The Greater London Authority has received a direct £4 billion investment from the government to develop more affordable homes. However, the investment may be too little, too late if the situation worsens. More urgent responses are needed.

The London housing crisis illustrates the tenuous link between homelessness and housing rights, a subject that needs urgent attention. A concentrated effort from legal teams, policymakers, landlords and tenants alike is needed to address these complex issues and establish a fair housing market.

How can Duncan Lewis help?

If you are living in unaffordable accommodation and struggling to pay your rent, please contact Duncan Lewis Housing Solicitors for legal advice.

Duncan Lewis advises on all aspects of landlord and tenant law – including notices seeking possession, breach of tenancy agreement, rent arrears and landlords failing to carry out repairs.

Our Housing team is ranked and recommended by The Legal 500 and Chambers & Partners UK for its services nationwide to social tenants across London, and provides guidance for landlords and tenants on all housing issues. We are highly experienced at finding solutions to your housing issues and aim to address cases quickly and effectively.

About the author

Isha Kantaria.is a Caseworker in the Housing department at Duncan Lewis Solicitors. She is experienced in the full range of public and private law housing matters including

• Homelessness


• Disrepair


• Eviction


• Possession


• Property Ownership Disputes