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Southwark renters now spend more than half their income on rent


19 March 2015
Homes1 New figures show that private renters in Southwark are now paying half their gross income on rent.

In Southwark rents are taking up 52 per cent of local people’s income, according to the new figures compiled by the House of Commons Library. Rent costs more than half of income in 13 of London’s 32 Boroughs.
 
These figures are before tax is taken into account, meaning that in reality Londoners are paying significantly more than half of their take home pay on rent.

The next Labour government will ban letting agents’ fees for tenants, saving people on average £350 in costs. Labour will also legislate against excessive rent increases and make three year tenancies the standard in
the private rented sector - giving people the certainty and security they need. A Labour Government will also build 200,000 homes every year by 2020.  
 
According to the census, 28% people in Bermondsey & Old Southwark rent – 15,500 people. By 2021 this is projected to increase to nearly 23,000 renters.

Neil Coyle, Labour’s Parliamentary Candidate for Bermondsey & Old Southwark, said:

‘These figures confirm the extent of the housing crisis in Bermondsey & Old Southwark and across London. Renters in Southwark are now spending more than half their income on rent – if rents continue to soar residents could be forced to move outside the constituency to find affordable homes to rent.

‘We need a Government that will take action to cap soaring rent prices and support renters with longer-term more secure tenancies.’  

Alex Hilton, Director of Generation Rent, said: 

‘With rents so high, it’s becoming impossible for native Londoners and newcomers alike to make a life for themselves in the capital. London will start seeing a brain drain and that will cripple businesses with rising wage pressures, damaging the city and the UK economy as a whole. London’s renters need action from politicians – and fast.’ 

Sadiq Khan, Labour’s Shadow London Minister, said: 


“The housing crisis is the biggest problem facing my generation of London politicians and these figures show just how badly Londoners are suffering. It is simply not sustainable for people to pay more than half of their income on rent alone.

“We must help generation rent by making renting more affordable and secure. We will make 3 year tenancies the standard, cap rent rises over that period and ban letting agents from charging fees to tenants. Helping renters is Labour’s top priority in London.”


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