London mayoral hopeful, Labour’s Sadiq Khan, has said that every time London tenants move into new rental accommodation it costs them £3,735 upfront.
The sum, which is equivalent to six weeks’ average pay in London, was compiled by using data from London’s six biggest agents.
The figure includes letting agent fees, deposits and rent payable in advance.
The upfront cost varies from £2,662 in the Bexley and Havering boroughs to £6,080 in Kensington and Chelsea.
Khan,who is ahead in the London mayor stakes, said the fees were exorbitant and a rip-off.
He said: “Millions of Londoners already struggling to find somewhere affordable to rent are also facing exorbitant and rip-off letting fees.”
Labour says that average letting agent fees have gone up 48% across London since 2008.
Luton MP Khan, son of a bus driver and seamstress, said that on top of fees, letting agents are asking for a deposit equivalent to six weeks’ rent and at least one month’s rent in advance.
He said the average letting agent fee charged by London’s biggest agents is £397.
The average deposit in London is £1,940 and the average first month’s rent payable in advance is £1,400.
Khan added: “People often have to move through no fault of their own, but because their rents are suddenly put up or they’re kicked out by their landlord.
“People are even having to take out loans or go into debt just to pay the huge initial costs.”
The average monthly wage in London is £2,700.
Khan has said he will set up a London-wide not-for-profit lettings agency should he become Mayor. His main rival is the Tories’ Zac Goldsmith.
Comments (8)
Property investing comes as second nature to the communities he no doubt represents. Perhaps someone should have a word in his shell like.
Ah yes, a not for profit (social enterprise) lettings agency – the answer to everything – much like Kids Company.
Why is rent being included in these figures?
If I buy a weeks groceries from Tesco I have to pay £150 “up-front”. If I fill my car with diesel I have to pay £80 “up-front”. If I rent a flat I have to pay for the rent “up-front”. That’s how it works – if you want a product or service then (unless you agree credit terms) you have to pay for it “up-front”.
What point is Mr Khan trying to make exactly?
Isn’t this the same Sadiq Khan, when member for Tooting, that was caught in the re-renting ‘shame and name’ scandal? Seems he knows more about making money out of renting that we initially thought, the little rascal.
He is a politician and wouldn’t know the truth if it bit him on the backside! For starters the deposit is held by a Government based scheme in many cases which Government introduced. This money still belongs to tenants but perhaps Mr Khan does not understand that! His labour party in councils like Croydon (and many other labour boroughs) introduced borough wide licensing which can cost landlords upto a £1,000 per property just to raise their funding. Government has introduced Right to Rent Checks and so much other legislation which has increased landlords costs. Then to top the whole thing the Government has sold off its housing stock and what it did not sell off to housing associations it sold at absolutely massive discounts to buy votes. A mistake that has now been repeated by the present Government with Housing Association properties and if this labour candidate gets into power wants to screw it up even further. Rent control will = less property to rent. Less property to rent means a further increase in rents the basic economics of supply and demand. They have permitted massive and sudden migration without fulfilling their duty to provide adequate infrastructure, so no new social housing, inadequate health service, dangerously overcrowded transport systems with tube station occasionally having to be closed; and guess what it is not their fault! Politicians are like magicians they hide the truth with slight of hand and then blame it on those they have conspired against.
Mr Khan has already demonstrated his methods with TfL and his “buy the votes policy” over transport fares for the next 4 years. And I thought there was anti bribery legislation in place? Of course, the public falls for it everytime, otherwise they would not use these tricks.
“Khan has said he will set up a London-wide not-for-profit lettings agency should he become Mayor.”
Not for profit, sure! All he has to do is pay himself a wage equal to the profit! or has he read the Google and Starbucks manual!
PMSL with that one.
Mr Khan, many have been here before you, sir. it’s easy to shout “this is too expensive, it’s a rip-off”, but EXACTLY WHAT would you do to resolve it?
Opening a not-for-profit letting agency is hardly going to change your quoted figures much, is it?
Yours,
An experienced letting agent.
PS. We take an average deposit of 5 weeks’ rent, and an average tenant admin fee of £250. But apart from those savings against your quoted figures, I see no further room for manoeuvre.