Record rent rises are an existential challenge for London’s future
It shouldn’t come as a surprise to anyone who lives in London, but yesterday the capital clocked a record increase in private rental prices, with the cost of leasing a flat in the capital ticking up by 6.2 per cent in the year to September, up from 5.9 per cent in August.
It is the highest increase of any region. The continued upward spiral of prices across the board is having a massive impact on the economy and households around the country and inflation is something which is, unfortunately, largely out of Rishi Sunak’s hands. We have only the blunt tool of interest rates at our disposal.
However the ongoing rent crisis is very much a challenge the government can address.
Indeed Keir Starmer, the Labour leader, tackled the housebuilding crisis head on and promised to end the stalemate by planning new homes on land the Tories refuse to touch.
Younger Conservatives, many of whom will hopefully be stewarding the party in years to come, have since demanded the Prime Minister answer Starmer’s bid to win the housing wars. They were met, largely, with silence.
The only hope on the horizon for renters is Michael Gove finally getting his way and outlawing no-fault evictions, a decision which should have been made years ago.
The laws will come too late for many in London and across the country who have founded themselves booted out of their homes after trying to negotiate down record rental rises from their landlords.
This is not a case of evil landlords trying to squeeze tenants for everything they are worth, but homeowners responding to an incredibly tight market which has been left to languish without the promise of new supply.
For example, Barratt, one of the country’s biggest developers warned yesterday that the outlook for the housing market remains uncertain, with only 9,221 homes built this year, in comparison to 13,000 in the same period last year.
This is an existential crisis for London, a city which thrives on being a place which attracts young, talented people to work in the businesses and professional services that keep the capital running. But if the very basic requirement of finding a home is impossible, those future employees and business leaders will simply turn around and head home – or worse, to one of London’s competitors.