The supply squeeze continues across prime central London (all three LonRes catchment areas) but it is the rental market that is struggling most. The shrinking number of homes available to buy - a trend that began in the second half of 2021 – continued into January this year. New instructions of homes for sale in January were 6% lower than the same month in 2021. This combined with high transaction levels means the number of properties available to buy in January was 16% lower than at the same period a year ago. However, it is the rental market where the supply squeeze has been greatest. New instructions of homes to rent in January were 29% lower than a year ago, while the amount of stock on the market available to rent was 67% lower. A lack of stock available to rent has started to affect new lets, which were 51% lower in January 2022 compared to the same month in 2021. Less stock available for tenants means less deals that can be done.

February 2022