Mayor warns that Londoners could see major rent rise

New analysis by City Hall found that the cost of renting privately in London could rise by almost 20% over the next five years if left unchecked.

According to the research, average asking rents in the capital could increase by an average of £370 a month to almost £2,300.

Despite a recent easing of rent rises and the cost of renting falling in some parts of London during the pandemic, London still has some of the highest rental costs in the world, with Londoners paying on average 35% of their income to landlords.

Mayor of London, Sadiq Khan, said: ‘Nearly a third of Londoners are private renters, but all too often their calls for support and fairness on rents are overlooked by both landlords and the Government.

‘I was re-elected on a pledge to redress this balance and to stand up for London’s renters by transforming tenancy laws and wrestling back control of runaway rents. Todays’ analysis paints a stark picture of the next five years if landlords are allowed to increase prices unchecked.

‘This is a matter of fairness, but also crucial to the future of our city. If we want the next generation of nurses, police officers, transport workers and key workers to train and work in the capital, we have no option but to keep a check on spiralling rents.’

Polling conducted for the Mayor last year found that one in four private renters in London were struggling to pay their rent during the pandemic or expecting to do so shortly, with private renters hit disproportionately by the pandemic in earnings reductions.

Alicia Kennedy, director of Generation Rent, said: ‘Unaffordable housing is stifling London. Over the past decade it has become impossible for many people to live close to their workplace or support networks they rely on, while others cannot afford to start a family.

‘Without urgent action on rent levels, more Londoners will face these dilemmas in the 2020s and quality of life will deteriorate.’

The Mayor of London pledged to lobby the government to give him power to introduce rent controls in the city, through his proposed London Private Rent Commission, which would design and implement rent controls to make living in the city more affordable.

City Hall’s forecast is based on analysis of information from property experts Savills, who predict renting privately in London will rise by 19% over the next five years, applied to the latest Rightmove figures for new tenancies.

In related news, the impact of second home ownership on Welsh communities is being addressed by a new three-pronged approach.

Photo by Benjamin Davies