London has seen a significant increase in the availability of rental properties. Data released by real estate agency Benham & Reeves highlights a 34.7% increase in rental homes within Greater London. This year, the number of rental listings surged to 45,200 in the first quarter, up from 33,562 in the previous year.

The increase in rental properties isn’t just a London phenomenon; it’s occurring nationwide. Across the UK, the rental market inventory rose by 12% year-on-year, totaling 154,510 properties available for rent.

Impact on Renters

Despite this welcome news for prospective tenants, Marc von Grundherr, director of Benham and Reeves, cautions that this boost in property availability may not fully resolve the ongoing supply-demand imbalance in London’s rental market. “The London rental market remains an extremely competitive place,” von Grundherr explained. “We’re seeing huge demand for homes right from the point they are reaching the market, with tenants falling over themselves to view and apply.”

This competition is underscored by the startling number of applications per listing. According to Grundherr, “We’re receiving an average of 21 applicants per listing within just 24 hours of a property going live.” This is a testament to the fierce demand despite the increase in supply.

Current Rental Prices

Interestingly, rental prices in the capital might have reached their peak in February, following a sharp rise of approximately 30% over the past two years. This could signal a plateauing of rent costs, which might come as a relief to many renters who have been grappling with steep increases.