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London housing crisis spreads outside M25

Monday, June 6, 2016

Scandal Of Rip Off Landlords As Rents Soar In Parts Of South East As London Housing Crisis Spreads Outside M25 Gmb Congress In Bournemouth Told

Security of tenure especially for families with children at school and rent controls will have to be introduced as well as a crash programme for new social housing in London and the South East if we want to maintain essential services GMB Congress told

A new study published at GMB Congress in Bournemouth today (Monday 6th June) on the change in rents in London for 1, 2 and 3 bedroom accommodation between 2011 and 2016 shows that the average cost of a one bedroom property in Milton Keynes increased by 23.8% between 2011 and 2016 -  the highest increase the region. The increase was 22.5% in Reading and 17.2% in Surrey.

For the South East as a whole average rents for one bedroom properties increased from £565 per month in 2011 to £650 in 2016 – up by £85 or 15%. The figures for all 19 areas in the region for average rents for one bedroom properties in 2011 and 2016 are set out in the table below.

There are seven areas where in the same period the cost of a two bed property soared above 20%. These are Brighton and Hove UA, 22.2%, Surrey, 22.2%, West Berkshire UA, 21.4%, Milton Keynes UA, 21.2% and Wokingham UA by 20.6%. For the South East as a whole average rents for two bedroom properties increased from £700 per month in 2011 to £825 in 2016 – up by £125 or 17.9%. The figures for all 19 areas in the region for average rents for one bedroom properties in 2011 and 2016 are set out notes to editors below.

There are also seven areas where in the same period the cost of a three bed property soared by over 20%. These are Slough UA, 26.3%, Buckinghamshire, 26.3%, Reading UA, 22.9%, Milton Keynes UA, 22.7%, West Sussex, 22.3%, Wokingham UA, 21.4% and Bracknell Forest UA by 20.6%. For the South East as a whole average rents for three bedroom properties increased from £850 per month in 2011 to £995 in 2016 – up by £145 or 17.9%. The figures for all 19 areas in the region for average rents for one bedroom properties in 2011 and 2016 are set out notes to below.

By comparison there are 11 boroughs in London where the average rents for one bedroom properties increased by 30% or more in the last five years. The figures for all 33 London boroughs for average rents for one-bedroom properties in 2011 and 2016 are set out in notes to editors below.

This huge jump in rents compares with a Retail Price Index increase of 12.3% between March 2011 and March 2016. It also compares with the average rent for a one-bedroom property in England in 2011 of £495 per month which increased by £55 to £550 in 2016 – an increase of 11.1%.

Also set out in notes to editors below are the average rents in 2011 and 2016 for two and three-bedroom accommodation by area in London and the South East, the change in £ per month and the % change and sources and definitions.  

Monthly average rent for 1-bedroom property by South East council area change between 2011 and 2016

 

 

 

one bed

 

 

 

2011

2016

change

% change (see note 2)*

 

ENGLAND

495

550

55

11.1

 

 

 

 

 

 

 

SOUTH EAST

565

650

85

15.0

rank

 

 

 

 

 

1

Milton Keynes UA

525

650

125

23.8

2

Reading UA

649

795

146

22.5

3

Surrey

725

850

125

17.2

4

Buckinghamshire

595

695

100

16.8

5

Hampshire

560

650

90

16.1

6

West Sussex

560

650

90

16.1

7

Kent

475

550

75

15.8

8

East Sussex

476

550

74

15.6

9

Bracknell Forest UA

650

750

100

15.4

10

Brighton and Hove UA

695

800

105

15.1

11

West Berkshire UA

575

650

75

13.0

12

Slough UA

650

725

75

11.5

13

Medway UA

495

550

55

11.1

14

Wokingham UA

675

750

75

11.1

15

Oxfordshire

675

750

75

11.1

16

Windsor and Maidenhead UA

750

825

75

10.0

17

Southampton UA

525

575

50

9.5

18

Isle of Wight UA

425

450

25

5.9

19

Portsmouth UA

520

550

30

5.8

             

 

Paul Maloney, GMB Southern Regional Secretary, said “These figures show that the housing crisis in London and the South East is getting worse as rents soar under a Tory Government at a time when wages are frozen or being cut.

The crisis in London is spilling beyond the M25. Crossrail will be a mixed blessing when it opens next year as faster journey times will most likely lead to even higher rents.

These soaring rents coincide with the explosion in the size of the private rented sector and the growth in the billions of taxpayer’s 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. Much of this public money is ending up untaxed in bank accounts in offshore tax havens. The Public Accounts Committee should conduct an urgent investigation into this scandal.

London Boroughs, the Mayor and South East Councils 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 London and South East England.

There is free for all in the London and South East housing market at a time when wages for essential public sector workers are frozen. Some workers in the region like cab drivers even face pay cuts. This position is not sustainable and new thinking is needed to deal with it.

The last time London and the South East faced such a housing crunch after the war the building of the new towns was undertaken. Maybe the Labour Party need to examine again the case for these and other initiatives.”

End

Contact:  Paul Maloney on 07801 343 839; Richard O’Leary 07710 631347; Warren Kenny on 07843 63239; Gary Doolan 07852 182358; Michelle Gordon 07866 369259 or GMB press office on 07970 863 411 or 07739 182691

Notes to editors

1 Sources and definitions

Private Rental Market Summary Statistics; Valuation Office Agency

The data is collected by the Valuation Office for the purpose of supporting the Local Housing Allowance – used to work out how much Housing Benefit is paid if renting from a private landlord.  This is the primary purpose of the data and as a result the samples from year to year can vary so the data provides a snapshot on the market rather than a comprehensive study of all prices. The data used to generate these statistics are based on a sample of rental information, collected by Rent Officers from landlords and letting agents.

One Bedroom self-contained properties with one bedroom including houses, bungalows, flats and maisonettes.

Two Bedrooms self-contained properties with two bedrooms including houses, bungalows, flats and maisonettes.

Three Bedrooms self-contained properties with three bedrooms including houses, bungalows, flats and maisonettes.

2 This % has been calculated by GMB to give an indication of the scale of the changes in average rents used to calculate the amount of housing benefits to pay to private landlords in 2011 and 2016. These figures are not a time series due to sample changes each year. The % is based on the data used as part of the process in paying out £24.3 billion in housing benefit. 

3 Average rent 1 bedroom property by London Borough

 

 

 

one bed

 

 

2011

2016

change

% change (see note 2 above)

 

ENGLAND

495

550

55

11.1

 

 

 

 

 

 

 

LONDON

950

1,250

300

31.6

rank

 

 

 

 

 

1

Hounslow

825

1,248

423

51.3

2

Greenwich

750

1,050

300

40.0

3

Lewisham

750

1,050

300

40.0

4

Merton

850

1,175

325

38.2

5

Waltham Forest

737

1,000

263

35.7

6

Haringey

910

1,235

325

35.7

7

Ealing

885

1,200

315

35.6

8

Lambeth

995

1,343

348

35.0

9

Richmond upon Thames

901

1,200

299

33.1

10

Hackney

1,083

1,430

347

32.0

11

Newham

801

1,050

249

31.1

12

Sutton

675

875

200

29.6

13

Redbridge

700

900

200

28.6

14

Southwark

997

1,278

281

28.2

15

Barking and Dagenham

665

850

185

27.8

16

Hammersmith and Fulham

1,083

1,383

300

27.7

17

Wandsworth

1,100

1,387

287

26.1

18

Kingston upon Thames

850

1,070

220

25.9

19

Barnet

875

1,101

226

25.8

20

Harrow

795

1,000

205

25.8

21

Enfield

758

950

192

25.3

22

Islington

1,213

1,517

304

25.0

23

Croydon

700

875

175

25.0

24

Tower Hamlets

1,148

1,430

282

24.5

25

Bromley

725

900

175

24.1

26

Havering

650

800

150

23.1

27

Camden

1,300

1,582

282

21.7

28

Westminster

1,603

1,950

347

21.6

29

Brent

997

1,200

203

20.4

30

Hillingdon

750

900

150

20.0

31

Kensington and Chelsea

1,733

2,037

304

17.5

32

Bexley

643

750

108

16.7

33

City of London

1,560

1,733

173

11.1

 

 

 

 

 

 

 

 

Average rent - 2-bedroom properties by London Borough and South East Councils.

 

2011

2016

change

% see note 2 above

 

 

 

 

 

ENGLAND

550

600

50

9.1

 

 

 

 

 

LONDON

1,192

1,500

308

25.9

 

 

 

 

 

Hounslow

1,000

1,550

550

55.0

Greenwich

900

1,290

390

43.3

Waltham Forest

910

1,250

340

37.4

Newham

950

1,300

350

36.8

Lewisham

950

1,300

350

36.8

Sutton

850

1,150

300

35.3

Croydon

850

1,150

300

35.3

Hackney

1,343

1,798

455

33.8

Barking and Dagenham

825

1,100

275

33.3

Bromley

900

1,200

300

33.3

Redbridge

900

1,200

300

33.3

Harrow

975

1,295

320

32.8

Ealing

1,100

1,452

352

32.0

Hillingdon

925

1,200

275

29.7

Lambeth

1,235

1,600

365

29.6

Merton

1,100

1,425

325

29.5

Kingston upon Thames

1,068

1,350

283

26.5

Bexley

795

1,000

205

25.8

Enfield

1,000

1,250

250

25.0

Barnet

1,127

1,400

273

24.3

Haringey

1,213

1,495

282

23.2

Wandsworth

1,387

1,700

313

22.6

Tower Hamlets

1,430

1,750

320

22.4

Richmond upon Thames

1,275

1,550

275

21.6

City of London

2,024

2,459

435

21.5

Havering

825

1,000

175

21.2

Kensington and Chelsea

2,492

3,012

520

20.9

Hammersmith and Fulham

1,495

1,798

303

20.3

Camden

1,733

2,080

347

20.0

Islington

1,625

1,950

325

20.0

Southwark

1,300

1,560

260

20.0

Brent

1,300

1,500

200

15.4

Westminster

2,275

2,600

325

14.3

 

 

 

 

 

 

 

 

 

 

SOUTH EAST

700

825

125

17.9

 

 

 

 

 

Brighton and Hove UA

900

1,100

200

22.2

Surrey

900

1,100

200

22.2

West Berkshire UA

700

850

150

21.4

Milton Keynes UA

660

800

140

21.2

Wokingham UA

825

995

170

20.6

Reading UA

795

950

155

19.5

Buckinghamshire

750

895

145

19.3

West Sussex

725

850

125

17.2

Slough UA

795

925

130

16.4

Bracknell Forest UA

800

925

125

15.6

Hampshire

695

800

105

15.1

Medway UA

595

675

80

13.4

Oxfordshire

795

895

100

12.6

Kent

625

700

75

12.0

East Sussex

650

725

75

11.5

Portsmouth UA

630

695

65

10.3

Southampton UA

695

765

70

10.1

Windsor and Maidenhead UA

1,045

1,150

105

10.0

Isle of Wight UA

550

595

45

8.2

 

 

 

 

 

 

 

3 Average rents 3-bedroom properties by London Borough and South East Councils between 2011 and 2016.

 

 

 

 

 

 

 

 

 

 

 

 

%

See note 2 above

 

 

 

 

 

 

 

ENGLAND

650

695

45

6.9

 

 

 

 

 

 

 

LONDON

1,350

1,800

450

33.3

rank

 

 

 

 

 

1

Hackney

1,647

2,383

736

44.7

2

Hounslow

1,200

1,700

500

41.7

3

Lambeth

1,532

2,167

635

41.5

4

Ealing

1,300

1,800

500

38.5

5

Merton

1,300

1,800

500

38.5

6

Tower Hamlets

1,614

2,210

596

36.9

7

Barking and Dagenham

953

1,300

347

36.4

8

Wandsworth

1,636

2,225

589

36.0

9

Richmond upon Thames

1,550

2,098

548

35.4

10

Haringey

1,400

1,879

479

34.2

11

Lewisham

1,200

1,600

400

33.3

12

Newham

1,200

1,600

400

33.3

13

Kingston upon Thames

1,300

1,733

433

33.3

14

Bexley

950

1,250

300

31.6

15

Havering

950

1,250

300

31.6

16

Greenwich

1,100

1,438

338

30.7

17

Hammersmith and Fulham

1,950

2,545

595

30.5

18

Waltham Forest

1,150

1,500

350

30.4

19

Harrow

1,250

1,600

350

28.0

20

Camden

2,297

2,925

628

27.4

21

Southwark

1,500

1,900

400

26.7

22

Bromley

1,150

1,450

300

26.1

23

Hillingdon

1,150

1,450

300

26.1

24

Sutton

1,150

1,450

300

26.1

25

Redbridge

1,192

1,500

308

25.9

26

Islington

1,950

2,448

498

25.5

27

Westminster

3,120

3,878

758

24.3

28

Croydon

1,100

1,350

250

22.7

29

Barnet

1,500

1,800

300

20.0

30

Enfield

1,250

1,500

250

20.0

31

Brent

1,517

1,820

303

20.0

32

Kensington and Chelsea

4,333

4,507

174

4.0

 

 

 

 

 

 

 

City of London

-

..

-

-

 

This is the 3 bed property data for the South East

 

 

 

three bed

 

 

2011

2016

change

% change

 

ENGLAND

650

695

45

6.9

 

 

 

 

 

 

 

SOUTH EAST

850

995

145

17.1

rank

 

 

 

 

 

1

Slough UA

950

1,200

250

26.3

2

Buckinghamshire

950

1,200

250

26.3

3

Reading UA

895

1,100

205

22.9

4

Milton Keynes UA

750

920

170

22.7

5

West Sussex

895

1,095

200

22.3

6

Wokingham UA

1,050

1,275

225

21.4

7

Bracknell Forest UA

995

1,200

205

20.6

8

Brighton and Hove UA

1,175

1,394

219

18.6

9

Hampshire

825

975

150

18.2

10

Oxfordshire

950

1,100

150

15.8

11

Medway UA

675

775

100

14.8

12

West Berkshire UA

875

1,000

125

14.3

13

Kent

745

850

105

14.1

14

Surrey

1,195

1,350

155

13.0

15

East Sussex

810

913

103

12.7

16

Windsor and Maidenhead UA

1,250

1,385

135

10.8

17

Portsmouth UA

750

825

75

10.0

18

Isle of Wight UA

675

725

50

7.4

19

Southampton UA

850

895

45

5.3

               

 

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