Average London rental costs may soar to £2,700 a month in 2024 as families risk falling into poverty

Average rental costs in London may soar to £2,700 per month next year, with campaigners predicting that the "sky-high" prices will force families in the city into poverty. According to the figures gathered by City Hall, this means, many Londoners can expect to pay £133 more than the current average of £2,567 calculated by property marketplace, Rightmove.

This comes as statistics released by London Councils showed that one in 50 people in the capital is living in temporary accommodation. London mayor Sadiq Khan, who has campaigned for the Government to introduce a two-year rental freeze, said the latest figures were a “clear picture” that controls were necessary.

He told PA: “Private renters make up nearly a third of everyone living in the capital, but they are being constantly let down by a government that refuses to listen and take urgent action to protect them from even greater financial hardship.”

Ben Twomey, chief executive of campaign group Generation Rent, called for a “big increase” in affordable and social housing. He said: “Spiralling rents are driving families into poverty and onto the streets. That is why we support the Mayor’s call for devolved powers to take action to stabilise rents.

“The average London renter is already putting 40% of their wages straight into their landlord’s pocket, and this situation shows no sign of improving on its own. Without action, Londoners will continue to face sky-high rents which are forcing the likes of nurses and teachers out of the city and hollowing out our communities.”

A spokeswoman for the Department for Levelling Up, Housing and Communities said: “We recognise people are facing pressures in the private rented sector, which is why we introduced the Renters (Reform) Bill, which is currently going through Parliament, and which will deliver a fairer deal for renters and landlords.

“Evidence shows that rent controls in the private sector do not work, as they lead to declining standards, a lack of investment and may encourage illegal subletting. We have a strong track record of delivering affordable homes to rent and buy across the country through our £11.5 billion Affordable Homes Programme.

“We have also announced £10 billion investment into housing supply and are on track to deliver our target of one million new homes this Parliament.”