Figures published on Friday by the Office for National Statistics showed that rents across Great Britain rose by an average of 2.6% in the 12 months to April, with tenants in London seeing the biggest jump in prices. The ONS’s private rental index showed tenants were paying more in all parts of the country, with rents up 2.8% in England, 0.2% in Wales and 0.5% in Scotland. In London, rents were up 3.7% over the year.
The thinktank the Resolution Foundation said the ONS’s figures showed the cost of renting in London had increased by a fifth over the last five years while pay had flatlined. Lindsay Judge, senior research and policy analyst at the Resolution Foundation, said: “This is bad news for living standards, bad news for employers and bad news for the wider economy.
“Getting to grips with the affordability crunch facing private renters in London is a tough task that the new mayor will need to take on.”
Well the new Mayor will have to deal with two main problems – continuing population growth in London – estimated to get worse, and lots of housing being built for the luxury market. An end to both would make a significant difference to house prices and rents. The problem is that the new Mayor is wedded to allowing indeed encouraging the population to boom and enableing the rich to live in London! Go figure!