A freeze on private rent in London would save households on average almost £ 3,000 over two years, according to new analysis from City Hall.
It happens when the mayor of London, Sadiq Khan, once again calls on the government to give him the power to impose rent controls in London in the midst of the ongoing cost of living crisis.
The average monthly rent in London rose by 10.9 per cent to £ 2,142 by the end of 2021, while energy prices are set to rise by an average of £ 693 a year from April.
On Wednesday, Sadiq Khan called on the government to give him the power to impose a freeze on rents in London, which City Hall estimates could save households £ 881 in the first year and £ 2,107 in the second year – offsetting the rise in energy prices.
Khan said: “Private tenants make up almost a third of all people living in the capital and they will be hit by a devastating combination of price and bill increases. All too often, private tenants’ needs are ignored by both landlords and the government.
Rising fuel and energy costs – which will hit tenants in energy-efficient homes the hardest – are already giving rise to anxiety and stress, with a large increase in the energy price ceiling expected next month. That is why today I urge Ministers to give me the power to stop rent increases in the capital and to help me give people a chance to get back on their feet after the pandemic. ”
Alicia Kennedy, director of the tenancy rights group Generation Rent, said the cost of living “is out of control” and “tenants need more protection against unaffordable rent increases”.
She said: “It is too easy for landlords to raise the rent on tenants and it is too difficult for tenants to negotiate or challenge a rent increase in a court of law. Without intervention, landlords can effectively evict their tenants by making their homes too expensive to “They can afford it. The mayor needs the power to intervene on behalf of London’s millions of tenants.”
Sadiq Khan included a promise to introduce rent control in London in his manifesto ahead of being re-elected in May last year.
The mayor of London currently has no statutory power over the private rental sector and will need the government to hand over these powers to him.