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London property rental becomes unaffordable for families

Written on:October 22, 2023
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Rents to go out of families’ reach over the next decade

The inadequate supply to the growing demand for the housing property market will show effect on the property rental as property prices are predicted to become unaffordable for customers over the next decade, a report suggests.

The report forecasts that average rents are expected to rise by 50%, exceeding £2,000 a month by 2022 and far outstripping pay rises. Many families will be forced to claim housing benefit to avoid eviction, as a result of this humongous rise.

London house prices are expected to increase over the next decade by 60%, to an average of £687,900. This increase is expected to bring down home ownership in London 40% mark by 2025, the lowest level for a quarter of a century. Recent figures in property website Zoopla showed that property prices in London rising 7.3% over the past year to an average of £444,393, more than twice the pace of any other area.

Kate Dodsworth, the London assistant director for the National Housing Federation, which published the study, said, “We have reached the point of absolute crisis — the supply of new housing is not keeping up with demand in London. This is not a time for a short-term response, the Government has to look beyond 10 years if we are going to have a chance of sorting this out.”

The Federation disclosed that rents rose faster than wages last year in 28 of London’s 33 local authority areas. The biggest “affordability gap” was in Hammersmith & Fulham where average monthly rents increased 15% to £1,677, while average income dropped by 1%. Merton, Barnet, Richmond and Enfield were other boroughs which recorded double-digit rent rises.

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3 Comments add one

  1. P Barrett says:

    So finally renters will have to do what homebuyers had to do decades ago; move out of London to more affordable areas and COMMUTE.
    Well now poorer renters will now have to do the same.
    Where is it written that tenants should have affordable rental property in the capital; homeowners don’t have any assistance, why do renters think they are diferent.
    They are subject to market forces, just like homeowners.

  2. Natalie says:

    London is a magnificent city… but if property rental becomes unaffordable, London will be known as a city that caters only to the super rich…

  3. Paul says:

    This is a really sad situation…. prices have to become more reasonable…. otherwise, homelessness could become a problem through many areas on London…….now that would not be wanted by proud Londoners…

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