London taxpayers fund over £12 billion yearly to bridge social-housing rent gap
A new data tool shows Londoners pay more than £12 billion each year to subsidise social housing, with the gap between council rents and market rates reaching up to £2,500 per month in some boroughs.
A recently released calculator, devised by London Assembly Member Neil Garratt, quantifies the annual taxpayer burden of subsidising social housing in the capital at over £12 billion. By matching ONS private-rent indices with census tenancy data, the tool shows an average monthly subsidy of £1,553 per dwelling, with the steepest gaps in wealthy boroughs: Kensington and Chelsea (£2,592), Westminster (£2,429), Islington (£1,975) and Camden (£1,904).
In Camden, a three-bedroom council flat costs tenants £763 per month, far below the £3,055 market rate, meaning taxpayers cover the £2,292 difference. The analysis also highlights that 47.6 % of London’s social-housing lead tenants were born outside the UK, with Brent recording a 61 % share of non-UK household heads. Officials and advocacy groups argue the data should prompt transparent discussion on the appropriate level of subsidies.
Why it matters
It reveals how much public money underwrites low-rent housing and who benefits, informing debates on fiscal fairness and housing policy.
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