London rents outpace wage growth
Rents in the capital are outpacing wage growth, with a two-bedroom flat rising by an average of 26 per cent since 2011 to £1,500 per month, while earnings rose by 9 per cent during the same period.
In 16 of the 33 London boroughs, rent on a two-bedroom flat increased by more than 30 per cent over the same period, while, across England, rents rose 18.2 per cent to £650 per calendar month, new research by the GMB trade union shows.
Greenwich witnessed the greatest hike in rent between 2011 and 2017, with rent of a two-bedroom flat increasing by 50 per cent, according to GMB, to hit an average rent of £1,350 per month.
Newham, Barking and Dagenham, and Lewisham, also saw a sharp rise in rent, increasing by 47.4 per cent, 42.4 per cent, and 42.1 per cent respectively, in the six years to 2017.
Warren Kenny, GMB regional secretary, said: “These high rents are here to stay. So too are younger workers living for longer in private sector rental accommodation.
“As a direct consequence, employers must be prepared to pay much higher wages to staff to enable them to afford these much higher rents.
“If employers don't respond with higher pay they will face staff shortages as workers, especially younger people, are priced out of housing market.”