London rents to tip over £1,600 mark by end of Boris Johnson's reign
Published by Max Salsbury for 24dash.com in Housing and also in Finance, Local Government
Opinion: Does social housing need a tougher approach to rent collection?Image: Rent arrears via Shutterstock
Average private sector rents will top £1,600 a month in London by the end of Boris Johnson's current reign, it has been predicted.
Based on rent rises between October 2011 and October 2013, as recorded by the Valuation Office Agency, London Assembly Labour member Tom Copley has warned that the capital's PRS tenants will be paying an average of £1,625 a month by April 2016.
Basing his forecast on the current rate of inflation, Copley says that outer London rents are set to rise to £1,350 a month, while inner city prices will soar to £1,805.
The average monthly rent cost across London currently stands at around £1,400 per month.
Copley, the Labour Group's housing spokesperson, is calling on the mayor to launch an investigation into "unsustainable" rent increases and establish proposals for a mechanism to stabilise rents in the capital.
He argues that the current rate of rent inflation is sucking demand out of the economy, and making London ever more unaffordable for people who work in the capital, which could impact on its economic growth.
Copley said: “These figures are a shocking foretaste of what Londoners can expect to pay in rent by the end of Boris Johnson's mayoralty. The current rate of rent inflation is making London unaffordable for people to live here, even those on ‘good’ salaries.
"With home-ownership an ever distant dream for many, it is time Boris Johnson used his position and launched an investigation into unsustainable rent rises and possible mechanisms for tackling them.
"Britain has one of the least regulated private rented markets in Europe. When more and more people have no choice but to rent we have to ensure that renting is a stable option, particularly for the growing number of families who live in this sector.
"There are good landlords who do right by their tenants, but there are an increasing number who do not. So far the Mayor has only adopted trivial voluntary schemes to improve standards, it is time he treated this issue with the seriousness it deserves.
"There are over 800,000 private rented households in London. If he doesn’t act these people will continue to be squeezed, quality of life will decline and London’s economy will be held back.”