Mayor calls emergency private renting summit as nearly half of London renters could default on their rent

• Mayor holds summit as new polling finds a shocking 40 per cent of Londoners think they will struggle to meet rent payments in the next six months 
• London average rental prices are now nearly £2500 a month – more than double some other parts of the UK
• Mayor repeats call for the Government to freeze rents in London
• Sadiq calls on the Government to act now to urgently protect renters increasingly at risk of losing their homes 
• Mayor to host emergency summit  on issues facing London’s renters and join in a call to action urging Ministers to tackle the capital’s rental crisis 

 

The Mayor of London, Sadiq Khan, has today revealed that 40 per cent of Londoners think that they will struggle to meet their rent payments as he brings together private renters, charities, advocacy groups and politicians to call on the Government to urgently tackle London’s spiralling rental crisis. 

The Mayor has also revealed today that the average advertised London rent has hit £2343 a month – more than double other parts of the country.

It comes as shock new polling of Londoners by YouGov finds that 40 per cent of London’s private renters are likely to struggle to make their rent payments in the next six months.[1]

London’s renters are facing multiple crises from escalating rents, insecure tenancies and unsafe homes. The Mayor and sector leaders will today join in a call to action, urging Ministers to immediately implement long-promised renters reform legislation to give renters the security and safety they so urgently need and to take action to make rents more affordable for Londoners.

A comparison of rental prices across the UK highlights the gravity of the situation in London. According to Rightmove, the average advertised rent in London is £2,343 a month. This is £1,000 more than the average advertised rent in the South West, £1,300 more than in the East Midlands, and £1564 more than in the North East.[2] 

For example for £2,500, you could rent a six-bedroom Grade II family home in Birmingham with a sprawling garden or a five-bedroom houses in Liverpool with an electricity and gas allowance 

For £1750 a month, you can rent a five-bedroom detached house rent in Wolverhampton, and in Burnley, a three-bedroom terrace house is just £750 a month. 

Meanwhile, for £454 less than the monthly average advertised London rent, you could move to Cyprus and rent a five-bedroom villa with a sauna, private pool, and two-car garage.

The average London tenant can expect to spend nearly 40 per cent of their income on renting a typical property and the latest figures show that asking rents for new rentals in London are growing faster than anywhere else in the UK, up more than 16 per cent in the last year.  

This situation is unsustainable, which is why Sadiq has repeatedly called on the government to urgently introduce a two-year rent freeze, to ease the burden on renters as the cost of living crisis worsens. Scotland has recently introduced such a freeze.

City Hall analysis shows a rent freeze in the capital over two years would save renters an average of £2,988. In the first year alone the saving would be £881 – money that could help families cope with the increases in energy prices we’ve seen this year.  

Last May, more than 1.2m Londoners re-elected Sadiq on a manifesto that expressly called for the introduction of rent control powers. It is time ministers recognised his mandate for change and gave him the tools to do this vitally important work.   

Government must also urgently double the notice periods for private rental evictions to four months. to give tenants extra financial breathing space to access support and advice, pay arrears or save for a move before their tenancies end. 

London’s struggling private renters need more council and social rented housing, more homes for first-time buyers, a welfare system that reflects the high costs of renting in London and fundamental reform of the private rented sector to rebalance it in favour of renters.   

The Mayor of London, Sadiq Khan, said: “The fact that 40 per cent of Londoners think that they will struggle to make their rent payments in the next six months shows the scale of the housing crisis in London.

“London’s private renters are facing a triple whammy with rising rents, bills, and the cost of household essentials putting a major strain on their finances. Ministers must take this crisis seriously and act now.

“There is no time to waste so we have come together today to speak with one voice. Our demands to ministers are simple: implement your long-promised renters reform legislation and take action now to make rents more affordable for Londoners, using all powers at the government’s disposal.

“As we continue working to build a better, fairer London for everyone, it’s vital that we stand up for renters in our city and find common ground on the action that needs to be taken to support them through the cost of living crisis, pay their rent and keep their homes.”

Alicia Kennedy, Director of Generation Rent, said: “When rents are rising on new tenancies, no private renter is safe. It is too easy for your landlord to demand a higher rent when they know they can evict you and re-let to someone else who is willing to pay it. People who don’t want to move are being priced out of their homes and forced to compete in this hellish market. And the cost of living crisis is making it even worse.

“The government can alleviate rising living costs for renters immediately with a freeze on rents on existing tenancies and suspension of Section 21 evictions so landlords can’t evict simply to re-let at a higher rent.”

Advice for Renters’, Head of Policy, Jacky Peacock OBE, said: “Private renters are among the hardest hit as the cost-of-living crisis deepens.  Most are struggling to pay unaffordable rents for properties that are often in poor condition and hard to heat. They face the stark choice of huge energy bills or a cold home with all the health risks this entails. Renters were promised a reform of the sector in December 2019.  Three years’ later, they are still waiting. The Government really must take action now.”

Kiran Ramchandani, Crisis Director of Policy and External Affairs, said: “Across London, spiralling rents are leaving thousands priced out of private renting and struggling to find homes. Through our own services we’re seeing the difficult positions people are in as they face cutting back on food and energy to try and make their rent payments and how, if nothing is done, this will likely force them and many more into homelessness this winter.

“The solutions are simple - increasing housing benefit so it covers the cheapest third of rents will ensure that people can afford to keep their homes this winter. Alongside this, we need to see no-fault evictions banned for good so that no one is uprooted from their home without reason. Taking this decisive action will give people the security they need and head off a surge in homelessness that will have devastating consequences on people’s lives.”

Kyron's story: 

Kyron lives in Hammersmith

Kyron and his girlfriend have been fighting a Section 21 eviction for the past few months. The flat they live in has had issues with disrepair and the landlord and letting agents have been in a tussle over responsibility for the flat. Kyron has found the experience understandably stressful and has been fighting the Section 21 because he believes the landlord hasn't fulfilled his obligations and because of the high price of rental properties in London. As he lives in Hammersmith and also cares part-time for his grandmother who lives nearby, he wants to ensure he is near her to continue helping to care for her and so doesn't want to be forced to be moved miles away.