Londoners are being “priced out” of renting in the capital, the Mayor has been warned as new data showed the average person is spending 41.6 per cent of their income on rent.
This is more than 10 per cent higher than the affordability threshold, which suggests renters should spend no more than 30 per cent of their income on housing.
All 32 boroughs in London have been above this level for eight of the nine financial years ending 2016 to 2024, sparking concerns that poorer renters are being pished out of the capital.
The most expensive place to live for renters relative to income is Kensington and Chelsea, according to the Office for National Statistics (ONS) data, where the average rent amounts to 74 per cent of income.
Renters in Westminster, Wandsworth, Camden and Hammersmith and Fulham are all paying over half their income in rent.
The London Borough of Havering has the lowest average income to rent ratio, at 30.5 per cent – though this is still above the affordability threshold.
The data also showed that average rents in London have been between 38.5 per cent and 57 per cent of income since 2016. In comparison, the figure is between 19 per cent and 36 per cent in other regions of the UK.
MP Luke Taylor, the Liberal Democrat London Spokesperson, said: “London used to be a city full of opportunities for everybody but too many Londoners, from working families to young people, are being priced out as a result of eye-watering rental costs.
“The rental market has turned into the Wild West with renters facing exorbitant rent increases and being thrown out with little notice after successive governments have dragged their feet in bringing an end to no-fault evictions.
“Labour must now act quickly and tackle this problem at its root, which is supply. That is why we’re calling on the Government to build 150,000 social homes a year nationwide and get on with renters’ reform to ensure everyone is able to live in and enjoy our great city.”
Image: Wikipedia
The Mayor of London has previously called for the government to devolve rent control powers to his office.
A spokesperson for the Mayor of London said: “The previous government’s disastrous legacy of underinvestment and indifference towards social and affordable housing, low economic growth and high interest rates has left many Londoners suffering the consequences.
“The Mayor is doing everything possible through his Affordable Homes Programme and London Plan to deliver the housing that Londoners need, with plans for homes with rents capped to the income of key workers – and he’s consistently fought the corner of London’s private renters, calling for better rights and protections, including stronger action against unscrupulous landlords who fail to ensure their properties meet safety standards.
“Sadiq welcomes efforts to address rental issues through the Renters’ Rights Bill and will continue working hand in hand with government, as well as boroughs and housing sector partners across the capital, to build a fairer and better London for everyone.”
