BBC’s radio programme More or Less has scrutinised the assertions made by London Mayor, Sadiq Khan, concerning the future of rental rates and income in the capital.
London Mayor, Sadiq Khan, had previously stated that potential rent in London could climb to an alarming £2,700 per month. This figure was cross-examined by the BBC following Khan’s announcement. Furthermore, Khan highlighted last month that the median monthly income for a London resident stands at £2,131. He voiced this in support of his continual plea for a freeze in rent prices.
Highlighting the urgency, the Mayor shared that there are 2.7 million individuals renting in London. With the ongoing housing predicament and the escalating cost of living, these renters are bearing the brunt of the financial strain.
According to Khan, recent findings suggest that a freeze in rent for two years could alleviate the burden on London renters by an average of £3,374.
Khan expressed, “These figures reveal the clearest picture yet of why rent controls are so necessary. Private renters make up nearly a third of everyone living in the capital, but they are being consistently let down by a Government that refuses to listen and take urgent action to protect them from even greater financial hardship.” He went on to add, “Londoners re-elected me on a manifesto pledge to push for the powers to control rents, and I will not stop advocating for this lifeline on their behalf.”
In an attempt to verify the Mayor’s claims, the BBC Radio 4’s More or Less programme delved deep into the numbers put forth by Khan and his team. Their analysis was backed by insights from Tim Bannister, who serves as the Director of Property Science at Rightmove.
The investigation revealed that Khan’s figures were derived from a blend of rent rates provided by Rightmove and a projected 5% increase, as suggested by Savills. This combination was used to derive the £2,700 monthly rent prediction for the coming year. However, it was found that this estimation took into account rentals of all dimensions, inclusive of multi-roomed properties, and only applied to new rental agreements. Moreover, the specified income of £2,131 was determined based on the earnings of an individual, not taking couples or entire households into account.