Press & media coverage

Rental supply in London is at critically low levels, with fewer than 3% of private rental homes currently available, according to research by Benham and Reeves. The findings highlight severe constraints on the capital’s rental market at a time when upcoming legislation could place further strain on supply.

Marc von Grundherr, director of estate agency Benham and Reeves, said: “What sellers should avoid is embarking on expensive projects purely to try to increase the sale price in the short term. Major extensions, loft conversions or structural layout changes rarely make financial sense if the only goal is to sell the property immediately afterwards.”

The research was carried out by estate agents Benham and Reeves which describes itself as “London property specialists” with 21 branches across the capital and 13 international offices.

Analysis from Benham and Reeves reviewed current residential listings across the capital to assess how evenly housing stock divides between the sales and lettings markets.

A study by London letting agent Benham and Reeves previously found that landlords pay an average of £3,000 in legal fees for evicting a rogue tenant. It also found that it costs an average of £22,775 to redecorate and fix a property if it has fallen into disrepair.

Marc von Grundherr, director of Benham and Reeves, says in a number of scenarios, a dedicated office space “is no longer a ‘nice to have’, it’s become a highly sought-after feature because it provides the privacy, structure, and practicality that hybrid working demands”.

Marc von Grundherr, director of Benham and Reeves: “The latest figures show that the UK housing market finished 2025 in reliably steady fashion, with annual growth remaining positive despite a slight seasonal monthly adjustment. London continues to trail in percentage terms, but at an average of over £551,000, the London market is hardly on its knees. The capital historically lags behind the rest of the UK when it comes to market adjustments and a return to positive growth, but when the tide turns in London, it turns quickly and so we expect a return to upward price appreciation sooner, rather than later.”

Tenant demand “remains resilient”, says London lettings agency Benham and Reeves after trawling property portal listings. A quarter of homes listed for rent across Britain have already found a tenant.

Benham and Reeves analysed current rental market listings to highlight rental demand and the size of properties most sought after by renters. The firm also commissioned a survey of UK renters to identify which property features matter most in the current market.

Marc von Grundherr, Director at Benham and Reeves. "The latest Halifax figures mirror those from Nationwide earlier this week and provide further evidence that the housing market has hit the ground running in 2026, with the seasonal month-on-month decline seen in December now giving way to green shoots of positive house price growth."