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London councils offer guaranteed rent as housing crisis deepens


Eleven London councils are making urgent appeals to private landlords for three-bedroom properties, with one management firm reporting “exceptionally high demand” across the capital.

Property management company Elliot Leigh, which works with local authorities to secure accommodation for homeless families, says councils in Brent, Barnet, Harrow, Enfield, Tower Hamlets, Hackney, Waltham Forest, Newham, Haringey, Barking and Dagenham, and Havering are all actively seeking properties.

Guaranteed rent and no void periods

To attract landlords in a market where many are selling up faster than they are buying, the councils are offering terms that eliminate common rental risks. Landlords who participate can secure:

  • Immediate lease agreements lasting two to five years
  • Guaranteed rent payments whether the property is occupied or not
  • No voids and no arrears risk
  • 24/7 property management and minor maintenance covered

The offers come as temporary accommodation costs continue to strain council budgets. Recent data shows private landlord numbers falling as investors exit the sector, making guaranteed income schemes increasingly attractive to those who remain.

Rental landscape driving demand

Elliot Leigh has positioned the scheme as an option for landlords navigating regulatory uncertainty. In a statement, the firm said: “If you own a three-bedroom property in one of these areas and are reviewing your options under the new rental landscape, this is a chance to secure a long-term, stable income at strong rates.”

The appeal highlights the growing tension between council housing obligations and the shrinking private rental supply. Government data shows local authorities placed more than 117,000 households in temporary accommodation at the end of September 2025, the highest figure on record.

Family-sized homes in short supply

The focus on three-bedroom properties reflects a specific shortage of family accommodation. Larger homes are harder to source through traditional lettings channels, and councils face particular pressure to house families with children who cannot be placed in smaller units or shared accommodation.

For landlords who may have considered exiting the sector, the scheme offers an alternative to sale. The guaranteed income model removes letting risk while still generating rental returns, and the management cover reduces day-to-day involvement.

Editor’s view
Councils do not make urgent public appeals unless they are desperate. For landlords weighing their options ahead of the Renters’ Rights Act, a guaranteed five-year income stream with no voids may be worth more than the hassle of selling in a sluggish market.

Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 February 2026

Sources: Elliot Leigh, London Councils
Related reading: Scottish landlords sell three times faster than they buy
 

About the Author

The Landlord Knowledge editorial news team is headed by Leon Hopkins
Editorial Team
The Landlord Knowledge editorial team covers UK buy-to-let and property investment news, policy, regulation, and finance. Our reporting focuses on the issues that matter most to private landlords and property investors across the UK. Headed by Leon Hopkins, author of The Landlord's Handbook.
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