The impact of housing costs on poverty

Date 20 April 2020
Date updated 20 April 2020

London poverty rates before and after housing costs (1996/97 - 2017/18)

Rest of England poverty rates before and after housing costs (1996/97 - 2017/18)

The proportion of people living in poverty in London almost doubles when housing costs are taken into account (rising from 15% to 28%). 

This gap between before and after housing costs measures of poverty is much larger in the capital than in the rest of the country. For example, in 2017/18 the gap was 12 percentage points in London, compared to 5 percentage points in the rest of England. This demonstrates the fact that the cost of housing is a much larger driver of poverty in London than in the rest of the country.

The impact housing costs have on poverty in London has also increased since the early 2000s. For example, in 2003/04 the gap between before and after housing costs measures of poverty in capital was 8 percentage points, whilst between 2010/11 and 2017/18 the gap has been between 12 and 14 percentage points.