The latest rental market supply and demand figures from flatware website SpareRoom indicate that supply and demand are finally returning to pre-pandemic levels after five years.
The analysis compares the number of live ads to people searching for a room.
Current figures show the national supply and demand are at 3.02 to 1, whilst for London the figures are lower at 2.65 to 1. This is in comparison to pre-pandemic stats from January 2019 which show a supply and demand ratio of 2.44 to 1 nationally and 2.22 to 1 in London.
The most significant gap between supply and demand since 2019 was in September of 2022, when a surge in people wanting to move post-pandemic caused the ratio to become wildly unbalanced. In London, demand outpaced supply 8.82 to 1, and with national figures at 8.13 to 1.
Whilst supply and demand in September and October this year was still above 3 to 1, November figures have shown a reassuring decrease, dropping from 3.67 in London to 2.65 and 4 nationally to 3.02.
| National | London | |
| January 2019 | 2.44 | 2.22 |
| November 2019 | 2.83 | 2.63 |
| November 2020 | 2.23 | 1.53 |
| November 2021 | 4.7 | 4.41 |
| November 2022 | 5.46 | 5.84 |
| November 2023 | 4.31 | 3.83 |
| November 2024 | 3.02 | 2.65 |
Matt Hutchinson, SpareRoom director, comments: “After peaking in September 2022, rental supply and demand has very gradually been rebalancing. The latest figures show that the ratio is back to pre-pandemic levels which is a promising sign for 2025 if the numbers continue to decrease as they have. Hopefully this is another strong indicator of the market stabilising, as rental increases also begin to slow, particularly in London.”
This article is taken from Landlord Today