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A new study by GMB of official data shows that between 2011 and 2017 rent prices for 2 bedroom flats in London increased by 25.9 per cent to an average of £1,500 per month, whilst over the same period, monthly earnings increased by just 9.1 per cent.
In England as a whole, between 2011 and 2017, rent has increased by 18.2 percent, with the average 2-bedroom flat costing £650 per month. Meanwhile wages increased by just 9.8 per cent.
In London, Greenwich is the borough that has seen the biggest rise in rent. Between 2011 and 2017 rent of a 2 bedroom flat increased by 50 per cent, to an average rent of £1,350 per month. Meanwhile, wages in the borough increased by just 7.2 per cent.
Other London boroughs with a significant gap between pay-rises and rent are; Newham, where rent increased by 47.4 per cent, yet wages have increased by just 9.5 per cent; Barking and Dagenham, where rent has increased by 42.4 per cent, yet wages by just 16.4 per cent; Lewisham, where rent has increased by 42.1 per cent since 2011, and wages have increased by 16.8 per cent; and Sutton, where rent for a two-bedroom flat has increased by 40.6 per cent to an average of £1,195 per month, whilst wages have increased by just 10.3 per cent.
The figures for the 33 London boroughs are set out in the table below. This is from a new study by GMB London Region of official data from the Office of National Statistics (ONS) for 33 boroughs in London. It shows the median rent of a 2-bedroom flat in 2017, the percentage change in rent-prices between 2011 and 2017, and the percentage change in monthly earnings between the 2011 and 2017. [See notes to editors for sources and definitions]
|Private Rental Market Statistics|
|Summary of ‘Two Bedrooms’ monthly rents|
|2017 Two bedroom monthly median rent||per cent change in rent 2011-2017||per cent change in monthly earnings 2011-2017|
|3||Barking and Dagenham||1,175||42.4||16.4|
|20||Kingston upon Thames||1,350||26.5||8.5|
|24||Hammersmith and Fulham||1,842||23.2||14.3|
|27||Kensington and Chelsea||3,033||21.7||——|
|30||City of London||2,383||17.8||——|
|31||Richmond upon Thames||1,500||17.6||-0.8|
Warren Kenny, GMB Regional Secretary said: “These official figures show increases in average rents for two bedroom flats of 30 per cent or higher in 16 of the 33 London boroughs in the six years since 2011. The average increase for all the boroughs is 25.9 per cent. By comparison average earnings in the same period rose by 9.1 pe
r cent in London.
“In Greenwich rents went up by no less than 50 per cent so that a two bedroom flat now absorbs about 70 per cent of the average net pay of a resident in the borough.
“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.