With the election just days away, we thought we’d look at how rents vary across London according to each area’s political colour. We simply looked at all the Conservative, Labour and Liberal Democrat areas and calculated the average 2 bed rent and how much it had changed in the last two years.
The first thing to notice is that rents are highest in the parts of London with Conservative MPs. London’s Conservative constituencies are in the south west of inner London as well as most of outer London. While rents in outer London are relatively low, this is out-weighed by those in the inner south west (which includes areas like Kensington and Chelsea and Westminster) which have the highest rents in the country.
The next highest rents are found in Lib Dem areas which are concentrated in outer south West London and a few spread around more central areas. The remainder of London is Labour controlled. Rents here are the lowest largely because much of the territory in in east London and inner south east London where rental demand is relatively lower.
Yet the main thing to notice about the graph is the massive extent by which rents have risen in the last 2 years in Labour areas, far more than in the other two. There are a few reasons for this. Firstly as rents rose across London, those in the less affluent parts of town were rising off a lower base, making the effect more profound. More importantly however is the Olympic effect which is still being felt in east London. Areas like Stratford and Newham (strong Labour areas) saw a new build housing boom. This meant that dramatically higher quality stock came on to the market to command higher rents. While this certainly increased the supply, many locals will feel priced out of the market as the rent rises are applied to their homes.
With Labour areas having felt rent rises more than any other area, it’s no surprise Labour have specifically pledge to curb rent increases in the manifesto. To read more about what we think on the matter, please check out our thoughts Labour’s proposed rent caps.
This chart very clearly shows why Ed Miliband and Labour have targeted rental inflation in their manifesto.May 1, 2015 rentonomy Topical