0:05 AM, 23rd June 2023, About 2 years ago 33
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London’s Mayor Sadiq Khan has called for an immediate two-year rent freeze AND a ban on section 21 ‘no-fault’ evictions in London to help 160,000 Londoners who are behind on their rent.
His call comes as a survey from City Hall reveals that 30% of private renters in the capital are struggling financially – and 24% of tenants are struggling to pay their rent.
The survey found that 6% of renters have fallen behind in rent over the past six months.
The Greater London Authority says there are 2.7m Londoners in the private rented sector – so Mr Khan says that means 650,000 are struggling with their rent and 160,000 have fallen behind with payments.
One of the problems, Mr Khan says, is that the average rent in the capital is now £2,500 per month.
As a result, the Mayor has repeated his call on the Government to urgently introduce a two-year rent freeze in London to ease the burden on renters as the cost-of-living crisis worsens.
He also wants section 21 ‘no-fault’ evictions to be banned ‘without delay’.
Mr Khan said: “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.”
Mr Khan continued: “While the publication of the Government’s long-overdue Renters’ Reform Bill is a positive step forward, my message to ministers is that they must also take action now to make rents more affordable as a matter of urgency.
“As we work to build a better, fairer London for everyone, I’ll continue to stand up for renters in our city and do all I can to help them pay their rent and keep their homes.”
The Mayor also points to May’s Homelet rental data index which reveals that new tenancies in London cost a tenant 36% on average of their household income on rent – that’s 5% higher than the national average.
Also, the average new tenancy rent has rocketed since the pandemic with Rightmove data revealing that the average advertised rent in the capital reached £2,501 a month in March.
He says this is ‘unsustainable’ and leaves tenants unable to afford rent and losing their home.
A City Hall analysis say there were 3,630 households facing homelessness in London last year after receiving a Section 21 ‘no-fault’ eviction notice.
Mr Khan is also calling for social and council rented housing, more first-time buyer homes, London’s high renting costs to be reflected in the welfare system and a ‘fundamental reform’ of the PRS to provide secure and safe homes.
The director of Generation Rent, Ben Twomey, said: “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 lets us live here.”
He added: “Renters in London are at a very 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.”
A Department for Levelling Up, Housing and Communities spokesperson said: “We recognise people are facing pressures in the private rented sector, which is why we introduced the Renters’ Reform Bill in May, delivering a fairer deal for renters and empowering them to challenge unjustified rent increases and banning Section 21 ‘no-fault’ evictions.
“Evidence shows that rent controls in the private sector do not work, as they lead to declining standards, a lack of investment and may encourage illegal subletting.”
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Sheridan Vickers
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Sign Up12:18 PM, 23rd June 2023, About 2 years ago
Reply to the comment left by Churchills Tax Advisers at 23/06/2023 - 12:16
Yes I'm wondering who the hell is voting for this despicable person. It certainly isn't me or anyone I know.
moneymanager
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Sign Up12:24 PM, 23rd June 2023, About 2 years ago
"Personally I think that private property has a right to be defended. Our civilisation is built up on property, and can only be defended by private property."
Winston Churchill
The NSDAP had a policy of promoting home ownership albeit only ONE property each, somehow we ended up siding with Communism which can be differentiated from corporatism by by the thickness of a piece of paper.
Rob Thomas
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Sign Up15:59 PM, 23rd June 2023, About 2 years ago
Reply to the comment left by David Smith at 23/06/2023 - 10:58
Labour has talked of introducing a "take back control bill" that will devolve many powers, including over housing, to local authorities. So by 2025, it is possible that Sadiq Khan will have the legal power to implement a rent freeze on the PRS.
He's determined to blame landlords for his failed policies. My advice is to put up rents while you still have the right to.
Avengers
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Sign Up16:59 PM, 23rd June 2023, About 2 years ago
The Mayor is an opportunist. He is not a good policy maker, not an economist or understand financials. In the current turmoil he will say anything to win votes from renters. If he is so concerned about struggling renters then what about struggling landlords whose tenants have not paid over 12 months of rents (despite the Council giving these tenants huge Housing Allowance). What about the cost of eviction on the Landlord bill? A typical 3-4 property landlord in this situation is worst off by nearly £40,000 when you add the rent arrears, the eviction costs, the mortgage payments, and the restoration costs after eviction. Has the mayor got anything to say here on behalf of struggling Landlords? When people in power like the mayor talk they have to look at both sides of the same coin, do their home work before making unfounded, politically motived statements like rent freeze and S21 ban - its purely one sided and Landlords are not bankers to bail out the Mayor's ideology.
Nick M
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Sign Up19:33 PM, 23rd June 2023, About 2 years ago
A rent freeze is possible. The mayor just needs to put his hand in his pocket
Recently we've seen energy prices reduced with a payment from the government. We've also seen £2 bus fares with a payment from the government. The supplier still gets the money, but the gap is made up by government.
So if the mayor is serious he could do this too. Pay the increase, while the tenants keep the same price. There's now clear precedence for this but I doubt the mayor or government will be as keen!
I can't think of any other area where the mayor is trying to interfere without paying compensation. Supermarket prices have increased at much higher rates than rent, so why are there no proposals to cap the price of bread?
Ash mahmood
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Sign Up21:47 PM, 23rd June 2023, About 2 years ago
Mr Khan how about freezing council tax or discounting it for people he seems to be concerned about. scraping congestion charges would also be a great help. His quite happy to increase all these charges every year. Miss a council take payment you land yourself in court. Miss a rent payment and the landlord is regarded a money grabbing so and so. Screwing the landlord will soon increase homelessness. Agreed doggy landlord should be punished. Bey decent landlord are getting screwed to. We're is the commense in that
Mr.A
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Sign Up0:23 AM, 24th June 2023, About 2 years ago
Khans a wee Clown .
Hes just trying to win votes , banging a currently popular drum.
"O look at me trying to get rents frozen for all you london tenants ,vote for me ,so my snout won't have to leave the trough.
No way in hell are the tories going to give him this gift ..
Whiteskifreak Surrey
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Sign Up6:10 AM, 24th June 2023, About 2 years ago
Reply to the comment left by Rob Thomas at 23/06/2023 - 15:59
"Take back control" policy has hit this country really badly already.
No repetition on the smaller scale in London is needed.
Desmond
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Sign Up7:02 AM, 24th June 2023, About 2 years ago
Squeezing the middle is the game of choice in the west nowadays. The native population is incentivised to be idle, the borders are open, the budget deficit is at the edge of a chasm as debt costs soar, and we force the dwindling tax base into recession. They are blocking the roads with planters, and now we have this maniac squeezing the last pips from the notion of social mobility. While his ilk will say it is the fault of capitalism that we are here, it doesn't look much like capitalism to me.
cashcow
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Sign Up12:41 PM, 24th June 2023, About 2 years ago
These are all great comments as usual, but how is it these comments never seem to reach the media, for example LBC radio had Mr Khan on with a very upset landlord and a very upset tenant story too. I tried to phone in with my 2 pence worth but was rejected, my main point would be to get rid of section 24 so I can put a hold on selling my portfolio and thus keep my very happy tenants housed.I am not the most articulate person in the room but was willing to have a go. what we need is to find someone to voice our concerns (ie A Bob Crow of housing/rental )