Report Reveals Sky-High Housing Costs Leave Millions of Londoners with Low Incomes

Report Reveals Sky-High Housing Costs Leave Millions of Londoners with Low Incomes

…By Lola Smith for TDPel Media.

A report released on Tuesday by the House of Commons Library into poverty in the UK has revealed that one million Londoners are living on relatively low incomes due to the high cost of housing in the capital.

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The study found that, before taking housing costs into account, 1.2 million people in the city, including 400,000 children, were classified as in “relative low income,” meaning they were living in households with incomes below 60% of the average for that year.

However, when housing costs are considered, the figure rockets to 2.2 million, including 700,000 children.

High housing costs are leaving even those with relatively high incomes in London struggling to make ends meet.

The study highlighted that the city and the South East had the lowest percentage of people in relative low income before housing costs, at 14%, with the West Midlands having the highest at 22%.

However, after housing costs, London climbed to the joint second-highest total number of people in such difficult financial situations, with 25% of the population affected, the same as the North East, and behind only the West Midlands at 27%.

Claire Harding, research director at the Centre for London, commented that “Londoners are being hit hard by the cost of living crisis, with high housing costs pushing thousands into poverty.”

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Harding went on to argue that “we need action now to bring spiralling rents under control.

In the short term this means uprating benefits to meet the real cost of living in London.

And it means unlocking development to build the affordable and social homes that Londoners desperately need.”

The report also investigated levels of “persistent low income,” which refers to people who have been in relative low income for three out of the past four years.

It found that London had the highest rate of persistent low income after housing costs, at 16%, followed by Yorkshire and the Humber, the North East, and the West Midlands, all at 14%.

The South East and South West were found to have the lowest rates of persistent low income in the country, at 10%.

Before housing costs, London had the lowest rate, alongside the South East, at 6%, while Yorkshire and the Humber had the highest at 13%.

Analysis and Commentaries

The report highlights the fact that high housing costs are leaving even those with relatively high incomes in London struggling to make ends meet.

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This is because the extra wages earned in the capital are quickly being eaten away by soaring rents and mortgage bills.

Furthermore, the study found that London had the highest rate of persistent low income after housing costs, which means that the cost of housing is having a long-term impact on people’s financial stability in the city.

The report’s findings suggest that housing costs in London need to be addressed urgently to prevent a worsening of the situation.

The report’s recommendations for uprating benefits and unlocking development to build affordable and social housing are positive steps towards alleviating the issue of high housing costs.

However, it remains to be seen whether such measures will be sufficient to tackle the issue.

The report highlights the need for more action to address the issue of housing costs in London, which is having a severe impact on the financial stability of a significant proportion of the city’s population.

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About the Author:

Lola Smith is a highly experienced writer and journalist with over 25 years of experience in the field. Her special interest lies in journalistic writeups, where she can utilize her skills and knowledge to bring important stories to the public eye. Lola’s dedication to her craft is unparalleled, and she writes with passion and precision, ensuring that her articles are informative, engaging, and thought-provoking. She lives in New York, USA.

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