Sem Moema AM calls for the Government to back Mayor’s housebuilding plans to avoid living standards “freefall” in London
The Government must fund Sadiq Khan’s building plans to address the broken housing market that is causing living standards to freefall, London Assembly Labour housing spokesperson Sem Moema has said.
London’s housing costs are harming living standards in the capital faster than anywhere else in the country.
More than half of Londoners – 55% - have seen increases in rent or mortgage bills, causing London to have the largest proportion of those cutting back to meet rising costs of any region in the UK, according to ONS data.
This is driving 36% of Londoners to cite housing costs as a cause of struggling to afford to and the 46% who find it difficult to afford their regular rent or mortgage payments – the worst region in the country.
Housing costs impacting the cost of living is causing Londoners to see a significant drop in their quality of life. As a result of financial pressures, half of people are cutting back on essentials, also the highest proportion in the country, and 69% of people cutting back on non-essentials, the second-highest after Scotland.
Assembly Member Sem Moema has warned that without action to reduce housing costs, Londoners will continue to see their income taken up by rent and mortgage payments to the detriment of their ability to live in the capital. She has written to the Chancellor, Jeremy Hunt, calling on the Government to provide the £470m urgently needed to increase housing supply on brownfield sites, as requested by Mayor Sadiq Khan.
Increasing supply will help reduce costs for Londoners, who are cutting back on their spending in order to meet the rising cost of living. The capital is seeing the highest proportion of those struggling to make ends meet because of their housing costs.
The Mayor of London, Sadiq Khan, has previously called on the Government to provide £470m funding for brownfield development boost to increase supply by 76,000 homes, following City Hall analysis that this would help alleviate the city’s housing crisis. Following a lack of funding in the Government’s Autumn Statement, Assembly Member Moema is calling for this to be included in the Spring Budget.
London Assembly Labour Housing Spokesperson, Sem Moema AM, said:
“Housing is the biggest challenge facing Londoners, with many struggling with sky-high rent and spiralling mortgage payments.
“These costs risk living standards going into freefall. More and more people find themselves unable to enjoy the amazing things London has to offer because of the pressures of the housing market.
“While the Mayor has met his target of starting 116,000 homes we know that urgent action must be taken to make sure that Londoners are not priced out of their own city. The government must come to the table and properly invest in affordable housing, starting with this funding for 76,000 new homes in London.”
ENDS
Notes to editors
- Sem Moema is the London Assembly Member for North East (covering Hackney, Islington and Waltham Forest) and the Labour Group spokesperson for Housing.
- Her letter is attached to this email.
- Source: Impact of increased cost of living on adults across Great Britain, July to October 2023.
- 55% of those in London currently paying rent or mortgage costs responded “Yes” to “Have your rent or mortgage payments gone up in the last 6 months?”, and 46% that say it is “Very or somewhat difficult” to afford rent or mortgage payments (Sheet 3.3)
- 36% of those in London responded that “My rent or mortgage costs have increased” when asked “Over the last month, for what reasons has your cost of living increased?” (Sheet 1.3)
- When asked “Which of these, if any, are you doing because of the increases in the cost of living?” 49% of Londoners said “Spending less on food shopping and essentials” and 69% said “Spending less on non-essentials” (Sheet 1.3)
More information about the Mayor’s call for Government funding for homes can be found in his press release Mayor calls on the Government to deliver £470m brownfield development boost to build 76,000 homes