Call for two-year rent freeze as London rents ‘spiral out of control’

London Mayor Sadiq Khan has repeated his call on the Government to urgently introduce a two-year rent freeze and banning Section 21 no-fault evictions without delay as City Hall polling reveals one in four private renters have struggled to make rent payments in the last six months.

There are approximately 2.7 million Londoners in the private rented sector – meaning that in the region of 650,000 are struggling with their rent while 160,000 have fallen behind with payments.

Average advertised rent in London is now at a record £2,501 a month and continues to rise with most recent analysis finding that 3,630 households were assessed as being threatened with homelessness in London after receiving a Section 21 no-fault eviction notice last year.

SECTION 21

A Section 21 allows landlords to evict tenants without giving a reason. After receiving a Section 21 notice, tenants have just two months before their landlord can apply for a court order to evict them.

Average rents for new tenancies have increased dramatically since the pandemic and the rate of growth remains high, despite reductions in growth across the rest of the UK.

The Homelet Rental Data Index for May 2023 shows renters taking up new tenancies in London spend an average of 36% of their household income on rent, nearly 5% higher than the national average.

JUST ABOUT MANAGING

Khan says: “With astronomical rents, bills, and the cost of household essentials rising, many London renters are only just about managing – and the situation is getting worse.

“More and more people are now at risk of being evicted. That’s why it has never been more urgent for the Government to implement an immediate two-year rent freeze in the capital and give me the power to introduce a system of rent controls that works for London.”

Ben Twomey, Director, Generation Rent, adds: “If London can’t provide homes for the people who want to live here, that’s a disaster not only for the city, but the country as a whole.

“People are being forced to move away from their families, others cannot take up job offers, and more of us are compromising by accepting overcrowded accommodation just to have a bed that let’s us live here.

“Renters in London are at a high risk of being evicted so landlords can sell or put the rent up.

“The Renters Reform Bill could make a huge difference to their security of tenure, but it needs to ensure bad landlords can’t continue exploiting tenants, and include better protections for tenants who face eviction for reasons beyond their control.”