1 in 3 London renters state they would not be able to afford an unexpected £50 bill
This week, at Centre for London’s London Conference 2024, the Mayor recommitted to fast action on housing, while we at Centre for London in partnership with Savanta released stark new polling on the reality of renting in the capital.
- Homeowners tend to be more positive about the capital, with 47% of homeowners feeling optimistic about ‘London as a whole’ in the next 12 months, in comparison to 39% of renters.
- 50% of Londoners don’t believe the housing market works for ‘people like them’, this drops to 37% among homeowners, but steeply rises to 63% among Londoners who rent.
- Renters are also statistically more likely to experience mould in their home, 1 in 3 Londoners who rent report experiencing mould in their home in the last 12 months.
“Housing was once the foundation for life, today it’s increasingly the barrier to it”, was how Sadiq Khan, Mayor of London, categorised the experience of housing at our London Conference on November 11th.
Centre for London and Savanta’s polling reveal the reality of housing in the capital – one where, as the Mayor states, home ownership is out of reach for many Londoners, yet renting is a critical drag on people’s income. This has led to 1 in 4 Londoners living in poverty after their housing costs are accounted for.
The same can be seen within Londoners bank accounts. Centre for London and Savanta’s polling further revealed that 1 in 5 Londoners who rent (20%) stated without external support they would not be able to afford an unexpected bill of £20, in comparison to 7% of Londoners who are homeowners. This rises to 1 in 3 London renters (36%) who were unable to afford an unexpected £50 bill, and 14% for homeowners. And a shameful half of London renters (51%) who could afford an unexpected £100 bill.
During his speech, the Mayor outlined the harsh reality facing too many Londoners as a result of the housing crisis. Speaking directly to young people, he stated:
“You’ve studied, at school, college and university, earned apprenticeships, qualifications and degrees, found jobs, worked hard, built careers – doing everything you’re supposed to do – and yet it feels like you’re putting everything you have into simply keeping a roof over your heads”
“Many of you are trapped in a perverse situation of paying more to rent than you would if you could buy, but you can’t secure a mortgage because the level of rent is so high you can’t save for a deposit.”
“The average price of a house in London, is almost 14x the typical household income.” “Anyone claiming the solution lies in cutting back on flat whites or Netflix needs to have a serious reality check.”
The Mayor went on to describe the implications of this within London and the wider UK, outlining an increasingly child-free future for the capital city.
“The UK’s birth rate is at its lowest on record, with housing often cited as a leading cause to defer starting a family or not even have one at all.”
“While too many young people feel like they have no choice but to leave London to afford a home where they can have children.” “Our primary schools are disappearing, secondary schools under threat, pupil numbers are predicted to fall by 52,000 by 2028 in London – double the national average. What would our city be without children?”
The picture outlined by Sadiq Khan is reflected in Centre for London’s own polling, in partnership with Savanta, on how Londoners feel about their city– where only 4 in 10 Londoners (42%) stated they felt optimistic about ‘London as a whole’ in the next 12 months, while 31% feel pessimistic. While uplifting to see the optimism within London’s population, the line between optimism and pessimism remains small, and housing looms large for many Londoners frightened of the future.
Antonia Jennings, CEO at Centre for London, comments below:
“It’s shocking to see the statistics laying bare the stark reality of renting in the capital, and yet these statistics sadly align with all we have heard and seen over the past decade.
London’s house prices are completely unattainable. London’s rental market is increasingly unaffordable. And therefore, fundamentally, London’s housing market does not work.
While our conference offered room for optimism, with the Mayor re-committing to tackling London’s housing crisis, the reality is that without a significant financial boost into the affordable housing market these worrying statistics will continue to worsen.
Housing is the foundation of our city. Without a strong foundation, London could begin to crumble”