Sadiq Khan has renewed calls for private rent controls in the capital to help tenants cope with the ‘rocketing’ cost of living.
The London mayor has said that freezing rents for two years could help thousands of Londoners save up to £3,000 in rent.
With London rents at a record high, Mr Khan is urging minsters to step in and regulate the private rented sector, or to give him powers to bring in caps himself.
It comes as City Hall analysis, based on forecasts from estate agent Savills, reveals the pandemic has led to a quarter of 2.4 million renters missing rent payments.
More than a third of private renters polled said they thought the pandemic was having a ‘large impact’ on their personal finances, with half a million Londoners now potentially facing eviction.
According to the mayor’s office, London renters will also soon be hit with higher bills due to steep rises in fuel and energy.
Mr Khan, said: “Private renters make up nearly a third of everyone living in the capital and they are set to be hit by a devastating combination of price and bill rises. Too often the needs of private renters are ignored by both landlords and the Government.
“Rising fuel and energy costs – which will hit renters in energy inefficient homes the hardest – are already causing anxiety and stress, with a big rise in the energy price cap due next month.”
He added that putting a stop to rent rises would “give people a chance to get back on their feet after the pandemic.”
Rents in London are already at a record level, hitting an all time high of £2,142 per month in January, according to figures from property website Rightmove. The capital has by far the biggest private rented sector of any region in Britain accounting for 29 per cent of all homes in the capital.
Bringing in London rent controls was one of the flagship policies in Khan’s 2020 re-election campaign. The move has been welcomed by housing campaigners as a way of protecting renters from rent hikes.
Alicia Kennedy, director of campaign group Generation Rent, said: “With the cost of living spiralling out of control, the Mayor is right that renters need more protections from unaffordable rent hikes.
“Without intervention landlords can effectively evict their tenants by making their home too expensive for them to afford. The mayor needs powers to intervene for London’s millions of renters.”
Critics of rent control policies argue while is can be helpful for tenants living in areas with rapidly rising rents, it can also lead to a shortage in supply if landlords decide not to rent out their properties.
In early 2020, the German capital of Berlin froze rents at mid-2019 level for five years, in a bid to curb sky-rocketing prices. However the regulation was short-lived, ending after a top court ruled it was unlawful.
