The Mayor of London, Sadiq Khan, has called for an immediate private rent freeze for Londoners, following new City Hall analysis which shows that renters in poorly insulated housing are paying a premium on their energy bills this winter.
As well as a rent freeze, which would save private tenants £3,000 over two years, the Mayor is advocating for the introduction of an energy Lifeline Tariff to ensure the most vulnerable people receive a base amount of free energy every day.
City Hall’s analysis shows that, even with the Government’s proposed price guarantee, London renters will be paying more for energy because of draughty homes.
Half of private rentals in the capital, equivalent to 490,000 homes, are below Band C, the minimum acceptable energy rating standard. Of these, 20,000 are at F or G, the two lowest ratings.
City Hall estimates that those with a rating below Band C will pay a premium of £455 per year, rising to £947 in Bands F and G.
Sadiq Khan said: “This winter London’s private renters are facing a triple whammy with rising rents, bills, and the cost of household essentials putting a major strain on their finances.
“Even with the Government’s price guarantee, private renters are set to pay significantly more for energy this winter because private landlords have failed to properly insulate draughty homes.
“I am once again urging Ministers to act now to tackle not only the climate crisis but the energy crisis and the spiralling cost of living by launching a major home insulation drive. The Government must also give me the powers to stop rents rising in the capital, which would save Londoners £3,000 over two years, and curb the inflationary pressure of rents on household budgets.”
This is not the first time that the Mayor has called for rent controls in the capital. During his re-election campaign in 2019, he said that controls like those already in place in cities like New York and Berlin (although these were later defeated in court) were also needed in London.
In March this year, he asked ministers for the power to freeze private rents in the capital for two years – a request he repeated in August, after rents had increased by 15 per cent in a year. Tweeting statistics from rental website SpareRoom, which showed that the average rent in London had risen to £815 per month, he said the situation was “a disgrace”.
With these repeated calls for rents to be frozen, pressure is mounting on ministers. Landlords and lettings experts, however, argue that rent controls may drive landlords from the market and reduce the number of properties available to rent.
Earlier this month, the Scottish government brought in emergency legislation to freeze rents, prompting demands from housing campaigners and tenants’ unions for London to follow suit.
“Private renters are being hit especially hard by the cost of living crisis through rent hikes and the rising cost of heating badly insulated homes, said Alicia Kennedy, Director of Generation Rent, a campaign led by renters.
“Without further action, more renters will face agonising choices of turning the heating on or putting food on the table. Many will fall behind on rent and risk eviction and homelessness and councils are already dealing with soaring cases of homelessness.
“To reverse this crisis, the government needs to freeze rents, suspend no fault evictions and stop automatic evictions for rent arrears.”
