Taxpayers in London are having to fork out more than £12billion every year to subsidise social housing in the capital, new data has revealed.

In some parts of the capital, taxpayers have to pay £2,500 every month for every social home in order to make up the difference between market value and social rent.


In Camden, where ex-Prime Minister Sir Keir Starmer was until recently the local MP, a social housing tenant can expect to pay around £763 a month for a three-bed home.

That’s less than a third of the average £3,055 for the same house on the private market.

Taxpayers have to cover that £2,292 difference.

In some Labour-run boroughs, social housing tenants can expect to receive a “lifetime” subsidy of around £656,000 over the course of 50 years if they remain in the same property.

The biggest gaps are in the wealthier boroughs of central London.

Kensington and Chelsea’s social housing is on average £2,592 cheaper per month than the market rate.

Westminster’s is £2,429, Islington’s is £1,975 and Camden’s is £1,904.

The average amount that taxpayers have to subsidise is £1,553.

The new tool has been created by Tory London Assembly Member Neil Garratt.

London map

MAPPED: The average gap in monthly private rent vs social rent in every London borough

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NEIL GARRATT

Using the ONS Price Index of Private Rents against Census data, Britons can calculate the average lifetime subsidy cost that council-controlled rents provide.

It means that for the first time, Britons can see the difference between social housing payments and market rents across the nation’s capital.

The data tool adds to a broader picture of who lives in taxpayer-funded accommodation across London and the country at large.

Just under half – 47.6 per cent – of all social housing lead tenants in London were born outside the country, according to 2021 census figures.

In Brent, 61 per cent of social housing is occupied by non-UK household heads, with British nationals accounting for just 39 per cent.

SOCIAL HOUSING – READ MORE:

Sadiq Khan

On average, hard-working Britons have to pay £1,533 every month to subsidise just one social home in London

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PA

Across England and Wales, less than a fifth of social housing is occupied by those born overseas.

Mr Garratt, the creator of the tool, said: “We can’t make informed decisions without the right information. This new tool lets people visualise how social housing fits into our housing market, and the astonishing gap between the going rate for a London flat and the rents some people are paying.

That gap, he said, is “covered by taxes on people who already have to pay for their own housing”.

He added: “Under this Mayor, housing starts have collapsed, and Londoners have seen their rent take up an ever-greater share of their salaries.

“It’s time politicians were honest about social housing, rather than the typical response we get from the left about how council houses are the panacea to our housing problems.”

The data tool has been designed to enable council leaders and voters to have an honest and frank conversation about social housing subsidies, so that the public and politicians can decide what an appropriate level of subsidy would be.

Social houses

Just under half – 47.6 per cent – of all social housing lead tenants in London were born outside the country

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It is believed to be the first time the two datasets have been compiled together.

In response, John O’Connell, the chief executive of the TaxPayers’ Alliance, said: “London taxpayers deserve to know the true cost of council rents being set far below the private market.

“Social housing can support people in genuine need, but those discounts are not cost-free and should be transparent.

“Councils should publish the full financial impact so taxpayers can see exactly what they are funding.”

A Ministry of Housing, Communities and Local Government spokesman said: “Social housing has a vital role to play in helping hard-working families and lifting children out of poverty and homelessness, in London and across the country.

“Our £39billion investment in social and affordable homes will help tackle the housing crisis head on, giving local people the support and stability they deserve so they can join the workforce, support the economy, and thrive in their community.”



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