How will Sadiq Khan deal with London's serious undersupply of homes to let?
Adrian Gill, director of Your Move, has spoken about the London lettings market following the election of Sadiq Khan as London's new mayor:
“As the new London Mayor, Sadiq Khan, settles into his new job, London’s housing supply is no doubt going to be a key topic on his business agenda and it could be that landlords will be his vital allies.
“London is the capital of renting. And in part that’s a good thing – tenants flock to where the jobs are. But it means that housing in London follows an entirely different set of rules from the rest of the country. This has to be recognised. Our capital is suffering from a serious undersupply of homes to let – which is down to an enormous undersupply of landlords taking up investment opportunities. Average rents in London have risen 19% since the last mayoral elections in May 2012, and by 35% overall since Boris Johnson was first elected Mayor in 2008. In stark contrast, rents across England and Wales as a whole have risen 19% since May 2008. If London sets the trend for the nation, this acceleration should be a wake-up call.
“To prevent a whirlpool of talent draining out of the capital, the new Mayor needs to throw landlords a life line. To build a sustainable supply of homes to let for the next four years, the Mayor must avoid populist anti-landlord policies that yield easy support in the short term but prevent people finding a place to rent further down the line. Instead, stimulating more – not less – investment from landlords is the way to keep rents more affordable.
“As serious meetings get underway this week in City Hall it will only underline that London is a city of renters, and landlords must be seen as part of the solution.”