Approximately 2.7 million private renters reside in London, with over 400,000 depending on Local Housing Allowance (LHA), underscoring the urgent demand for affordable housing.

A spokesperson for London Councils has stressed the critical need for national policy reforms to tackle the growing shortage of affordable housing and to prevent homelessness.

The LHA increase implemented in April was based on outdated rental data, failing to keep up with the rapid rise in rents, resulting in only 5% of rental listings being affordable by mid-2024.

Currently, only 5% of private rental listings in London are affordable for low-income households utilizing LHA to cover their rent.

From April 2021 to December 2023, London experienced a significant loss of rental properties, with 45,000 homes sold without replacement, representing 4.3% of the private rented sector.

The trend of landlords selling their rental properties to owner-occupiers has intensified, with average sales reaching £410,000 each.

A study conducted by Savills, commissioned by London Councils and Trust for London, highlights a notable decline in London's private rented sector.

The lower-cost segment of the rental market has been particularly affected by the ongoing loss of affordable rental properties.

The reduction in affordable rental properties is most pronounced in lower-cost areas, where there has been a monthly decrease of 3.3%, compared to a 2.6% decline across the rest of London.

Despite a government increase in LHA rates in April 2024, the availability of affordable listings for LHA recipients continued to diminish throughout 2023-24.