London’s housing situation has dropped significantly, according to Nick Millican. His sentiments come following a recent research that revealed a decline in the city’s lettings by 14% since the COVID-19 pandemic. Millican and other real estate experts admit that London’s national listings have fallen by 33%, the most severe in the U.K.

Causes and Effects

Landlords have opted to either leave the sector or reduce their portfolios. The city has witnessed an increase in the number of advertisements for properties on sale since the pandemic. Nick Millican explains that tenants have avoided navigating the volatile rental market by extending their stay. Therefore, vacant houses don’t’ occupants quickly, forcing landlords to look for better investment options.

Geographical Impact

Reduced listings have deeply affected inner-city areas with many rental properties, including the outstanding Kensington, Tower Hamlets, Chelsea, and Westminster. Nick Millican singles out Westminster, where it’s challenging to find affordable private rentals.

Government Policies

The government’s decision to freeze the Local Housing Allowance has contributed to the shortage in the rental market. The LHA determines the amount of support for low-income private renters. However, Nick Millican hopes that the parliament will pass the Rental Reform Bill and stabilize the private rented sector. He also suggests an increase in the LHA by at least 30% of local market rents.

About Millican

Nick Millican is a famous real estate guru specializing in asset development and investment management. He graduated with a Chemistry degree from Oxford University and worked as an Investment Banking Associate at Citi. The philanthropist is a Trustee and Director at Chickenshed Theatre, a renowned charitable organization that supports talents.