Huge Jump in London Rents Prompts Calls for Rent Controls
By |Published On: 8th June 2016|

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Huge Jump in London Rents Prompts Calls for Rent Controls

By |Published On: 8th June 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

A huge jump in London rents has prompted calls for rent controls and security of tenure by leading trade union GMB.

After recording a rent price rise of over 50% in one London borough, GMB called for New York-style rent controls and security of tenure for private tenants in the capital.

The GMB Congress in Bournemouth was told how families with children should face greater security in their rental properties, through rent caps and a crash programme for new social housing.

Huge Jump in London Rents Prompts Calls for Rent Controls

Huge Jump in London Rents Prompts Calls for Rent Controls

The study highlights the change in rents in the capital for one, two and three-bedroom properties between 2011-16. It found that the average cost of a one-bed home in Hounslow surged by 51.3% in the last five years – the highest increase in London.

In 2011, the average rent price in Hounslow for a one-bed property was £825 per month. It is now £1,248 – a rise of £423 a month.

The research found that in 11 London boroughs, rents have increased by 30% or more during the past five years.

For the capital as a whole, average rents for one-bed properties grew from £950 per month in 2011 to £1,250 in 2016 – up by £300 or 31.6%.

This huge leap in London rents compares to a Retail Price Index increase of 12.3% over the same period. It also compares to the average rent for a one-bed home in England in 2011 of £495 per month, which rose by £55 to £550 in 2016 – an increase of 11.1%.

Over the same period, the average rent for a two-bed property in London grew from £1,192 to £1,500 per month – up by £308 or 25.9%.

The average rent on a three-bed in the capital rose from £1,350 to £1,800 a month – up by £450 or 33.3%.

The Senior Officer at GMB, Warren Kenny, comments: “These figures show that the housing crisis in London is getting worse, as rents soar under a Tory Government. Rents in one borough for basic accommodation soared by over 50% at a time when wages are frozen or being cut.

“These soaring rents coincide with the explosion in the size of the private rented sector and the growth in the billions of taxpayers’ money paid in housing benefits to private landlords. Nationally, the figure has ballooned from £21.4 billion when Osborne came to power, to £24.3 billion four years later.”

He insists: “London boroughs and the Mayor have to set up a register of landlords to ensure that standards of accommodation are safe and fit for habitation. There is also a need for new legislation on security of tenure especially for families with children at school.

“Rent controls will have to be introduced as well as a crash programme for new social housing if we want to maintain essential services in the capital.”

He concludes: “There is a free-for-all in the London housing market at a time when wages for essential public sector workers are frozen. Some workers in the capital, like cab drivers, even face pay cuts. This position is not sustainable and new thinking is needed to deal with it.”

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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