A new to study revealed that tenants renting private properties in London were overcharged a total of £ 25.4 billion for their accommodation between the years 2012 and 2020.
Looking at the figures collected and interpreted by London member of the Assembly and Green Party adviser to Camden Sian Berry, average private tenants in London paid £ 25,439 more than they should have over the same period by comparing rent inflation to average wage increases in the capital.
The study, which brings together data from the Office for National Statistics on private rental market figures and annual surveys of hours and income, as well as a report from the Mayor of London on housing, takes into consideration a number of variables.
READ MORE: Most affordable town in UK where you can buy a house for the price of a garage in London
A statistical table in the study compares a range of figures, including the actual average London rent per month, the average wage inflation in London since the previous year, the average rent if costs had followed wages, the number of private properties rented in London, the actual total rent paid by Londoners each year, and the total Londoners were overcharged in rent each year.
According to the figures, the amount of rents generated by private tenants in London peaked in 2016, when the aggregate total of rents paid reached £ 20.86 billion.
That year Londoners were overcharged by £ 4.67 billion in rent.
From 2016, figures show that the total amount of rent paid by Londoners each year is gradually decreasing, falling to £ 20.3 billion in 2020, the lowest figure since London tenants paid a total from £ 19.7 billion in 2015.
The amount overcharged each year by Londoners for their rent also tends to rise and fall depending on the overall rent paid.
Do you want to stay on top of the latest news, views, features and opinions from all over the city?
MyLondon’s brilliant newsletter, The 12, is packed with all the latest news to keep you entertained, informed and uplifted.
You will receive 12 stories straight to your inbox at around 12 noon. It’s the perfect read for lunch.
And what’s more, it’s FREE!
The MyLondon team are telling stories of London to Londoners. Our journalists cover all the news you need – from city hall to your local streets, so you never miss a moment.
Don’t waste time and sign up for The 12 newsletter here.
Wages generally tended to increase year over year over the same period, with the exception of 2015 when wage inflation in London contracted by -0.1%.
Wage inflation in London picked up a year later, reaching an increase of 1.7 percent. This trend continued until a peak of 3.3% in 2019, before falling 0.9% in 2020.
A graph in the report also shows that during the period in question Londoners paid a total of £ 171bn in rent, which would have been £ 145bn had the rent increases matched wages.
According to a website created by Cllr Sian Berry, where Londoners can calculate How much they were overcharged by their landlords, Londoners could have bought ‘every house in Barking and Dagenham’ with the £ 25.4 billion in excess they paid in rent between 2012 and 2020.
Another table also shows the percentage of properties that could have been bought by excess rent on a borough-by-borough basis.
On her website, the Camden advisor said: “As a private tenant in London for almost 25 years, I know the worry and insecurity tenants feel about high rents. In fact, I almost had to leave London myself because of these pressures.
“The current mayor has made rent control part of his platform in this year’s election, but he needs to follow his words with actions to garner broad support for those powers to do something about this problem.” .
“25 billion pounds sterling is a huge sum to have paid above all expectations to our owners. In the pockets of tenants, this would have brought more security, the opportunity to save money and a lot less worry during the pandemic. Being overloaded with a hundred or two hundred pounds a month each really adds up to a serious total.
“How long do Londoners have to wait for a London mayor who will make lowering rents a national campaign priority and work with other mayors to lower our cost of living?”
Want the latest crime, sport, or the latest London news delivered straight to your inbox? Adapt your needs to your needs here.