For those looking for flats for rent in London, the two boroughs of Greenwich and Newham as based on the list compiled by the trade union GMB London, who also says that new residential constructions are needed for closing the gap between rent and pay, as well as help with recession.
The average rent in these two boroughs skyrocketed, with Greenwich and Newham listing at the top of the list as #1 and #2 as per the GMB’s list. According to the list, the two boroughs’ rent increased over the time of last six years.
Prices for flats in Greenwich rose by £450, from £900 up to £1,350. To contrast, average earnings in the area increased by £151. This meant that the borough listed number one in the study of 33 of London’s boroughs as conducted by the trade union, GMB. According to them, this was representative of the gap between the prices of residences and earnings, which they said would lead in consumer spending and worsen recession.
Newham made it in the list, placing second in the list, wherein rent rose by 47.4%, from £950 to £1,400, whilst earnings only increased by £122.
Hackney placed in the higher half at 13th on the table, but the notable thing about this borough for those looking for flats for rent in London, is that the increase of rent of 33.8% to £1,798, was met with an increase of income of £1.
In London, workers pay, on average, 53.3% of earnings to pay for the rent, up from 2011’s percentage of 44.9%. Both of these numbers are significantly higher than the country’s average figure of 27.4%.
According to Warren Kenny, the GMB London’s Regional Secretary, state that these figures are representative of the financial troubles brought in by the 2008 financial crisis, with rents in the city going up, whilst pay have been staying the same or going down.
GMB London says that pay has to go up for workers to be able to afford these rising rents so that the public of London can increase their spending, which will help in alleviating the current recession. Additionally, he says it is essential that more flats for rent in London need to built to help deal with the issue as soon as possible.