The rental market needs to get fixed in London

According to Rightmove rents across the capital have risen by almost a third since the height of the pandemic, taking the average advertised rent to a record £2,631. This is unsustainable if we want to maintain the influx of the best employees into the capital.

The simple reason for these increases is just a supply and demand disparity. The current Government’s actions have made it an unattractive investment for private landlords.

It’s been a perfect storm for Landlords. Government policy demonising private landlords, interest rates rises and further meddling by Gove.

Looking ahead I don’t see Labour having any obvious solution. Those who demand rent controls are correct, but this must be by encouraging investment into property and not just demanding rent control, which has proven not work.

The property industry generates between 15-18% of GDP, of which the investment markets is 3-5% of this figure. Property is a vital component for our economy.

This then raises the question on why we have had 15 housing minsters since 2010.

Whoever governs next years need to commit to a long term housing minister, whose focus is on easing planning restrictions and encourage rather than demonise property investment.

If we increase the supply of rental stock, rents will reduce and become sustainable.