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Thursday 03 August 2023 7:21 am  |  Updated:  Thursday 03 August 2023 7:22 am

London rent crisis deepens: Costs may soar to £2,700 as families face being driven in to poverty

By: City PM Reporter

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Estate agent signs placed outside homes, as average rental costs in London may soar to £2,700 per month next year, new figures suggest. PA Photo. Issue date: Thursday August 3, 2023. The figures, gathered by City Hall, mean that many Londoners can expect to pay £133 more than the current average of £2,567 calculated by Rightmove. See PA story POLITICS Rent. Photo credit should read: Yui Mok/PA Wire

Average rental costs in London may soar to £2,700 per month next year, new figures suggest.

Families in the city are being driven into poverty by “sky-high” rents, campaigners warned.

The figures, gathered by City Hall, mean that many Londoners can expect to pay £133 more than the current average of £2,567 calculated by Rightmove.

It comes as statistics released by London Councils showed that one in 50 people in the capital is living in temporary accommodation.

London mayor Sadiq Khan, who has campaigned for the Government to introduce a two-year rental freeze, said the latest figures were a “clear picture” that controls were necessary.

He said: “Private renters make up nearly a third of everyone living in the capital, but they are being constantly let down by a Government that refuses to listen and take urgent action to protect them from even greater financial hardship.”

Ben Twomey, chief executive of campaign group Generation Rent, called for a “big increase” in affordable and social housing.

He said: “Spiralling rents are driving families into poverty and on to the streets.

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“That is why we support the Mayor’s call for devolved powers to take action to stabilise rents.

“The average London renter is already putting 40 per cent of their wages straight into their landlord’s pocket, and this situation shows no sign of improving on its own.

“Without action, Londoners will continue to face sky-high rents which are forcing the likes of nurses and teachers out of the city and hollowing out our communities.”

A spokeswoman for the Department for Levelling Up, Housing and Communities said: “We recognise people are facing pressures in the private rented sector, which is why we introduced the Renters (Reform) Bill, which is currently going through Parliament, and which will deliver a fairer deal for renters and landlords.

“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.

“We have a strong track record of delivering affordable homes to rent and buy across the country through our £11.5 billion Affordable Homes Programme.

“We have also announced £10 billion investment into housing supply and are on track to deliver our target of one million new homes this Parliament.”

Press Association – Joseph Draper

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