Can You Afford to Live in London? Is the rental crisis killing London?
According to a recent article in The Guardian, there has been a £3,000-a-year fall in income of London workers between the years of 2010 and 2014. That’s a hell of a lot, particularly seeing as Britain is supposed to be ‘open for business’ once more.
With a population going bonkers – we’re approaching 10 million Londoners – many are writing the capital off as a refuge for the hyper rich and mega privileged. Perhaps this video is a bit of an insight into what those rich people think of the rest of us!
Regardless of your politics, there’s no doubting that there’s a real crisis happening in London when it comes to rent. So what’s the problem and is there any thing you can do if you’re in – or looking for – a flatshare in London to help?
Generation Rent
‘Where’s the rent cap!?’ we hear you say. Of course, our government doesn’t feel these are necessary, despite Germany giving them a go in Berlin. The lack of rental controls and the large amount of foreign investment pouring into the capital in recent years have created a new generation of people whose lives are ruled by their rent.
- In 2013, a study of 35,000 UK, French, Italian and Spanish rental properties found that UK tenants pay at least £50 more per month than their European friends.
- 2 in 5 people flat sharing now spend more than half of their monthly income on their rent.
- There has been a 48% rise in ads placed by people to share a bedroom.
- Average monthly London rents have hit £1,500 for the first time.
- Number of individuals in their mid 40s and over choosing to flatshare has grown year on year, now accounting for 5% of the total number of people searching for shared accommodation.
- Students believe they should be paying roughly 20% less per month on rent.
The overall picture painted by the above stats is that the current housing market – particularly in London – is rather broken.
Ultimately, it shows that there has been a generation of people who have been trapped by a housing market that is working for landlords, homeowners and property investors, rather than those looking for safe, comfortable and affordable homes, like you.
Karim Goudiaby, Easyroommate CEO, points out the fact that rent control is not the solution to London’s housing crisis. For him, London needs a more liberal housing market for the future:
” The British government should focus on controlling high rents in ways that will truly benefit the economy. Rather than focusing on rent caps, parliament should look to increase the shortage by encouraging investment. It’s not going to be easy to piece back the broken housing market, but rent control policies would be a short-term solution with long term consequences.”
A Possible Solution Looming
If you’re currently a student, young professional or otherwise, living in or looking for a flat share in London, we’d like to know how you’re coping with the London rental crisis. Can you afford to rent? Where’s out of your budget? Where would you live if you could afford it?
With London Mayoral elections looming, the question of whether London will eat itself is up in the air. One thing’s for sure, though, we need a fix, and we need it fast.
