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London Rents Rise By 50%

Monday, June 6, 2016

Scandal Of Rip Off Landlords As Rents Soar By Over 50% In Five Years In Some Parts Of London 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 if we want to maintain essential services in the capital 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 Hounslow shot up by 51.3% between 2011 and 2016 -  the highest increase the capital.

 In 2011 the average rent in Hounslow borough for a one bedroom property was £825 per month and is £1,248 in 2016 which is an increase of £423 per month.

There are 11 boroughs in London where the average rents for one bedroom properties increased by 30% or more in the last five years.

For London as a whole average rents for one bedroom properties increased from £950 per month in 2011 to £1,250 in 2016 – up by £300 or 31.6%. The figures for all 33 London boroughs for average rents for one-bedroom properties in 2011 and 2016 are set out in the table 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%.

Over the same period for London as a whole average rents for two bedroom properties increased from £1,192 to £1,500 per month – up by £308 or 25.9%.  Average rents for three-bedroom properties in London increased from £1,350 to £1,800 per month – up by £450 or 33.3%.

Set out in notes to editors below are the average rents in 2011 and 2016 for two and three bedroom accommodation by borough, the change in £ per month and the % changes. Also set out are the sources and definitions.  

Monthly average rent for 1 bedroom property by London borough change between 2011 and 2016

 

 

 

2011

£

2016

£

Change in £

% change*

 

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

Warren Kenny, GMB Senior officer, said “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 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 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.

There is 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.

The last time London 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: Warren Kenny 07843 63239; Richard O’Leary 07710 631347; 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.

* 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. 

2 Average rent - 2-bedroom properties by London Borough

 

 

 

2011

2016

change

%

 

 

 

 

 

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 between 2011 and 2016.

 

 

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

-

..

-

-

 

 

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