Majority of London renters spend over half of salary on rent

Most single tenants renting privately in London are now paying more than half of their monthly salary on average to rent a one-bedroom property.

Research undertaken by the property website Sellhousefast.uk which analysed the latest data from the Office of National Statistics (ONS) found that the average rent for a one-bedroom property in London is now almost £1,330 per month.

Percentage of salary spent on rent by London borough
Percentage of salary spent on rent by London borough

Despite having the highest costs of any housing type, the private rented sector has the worst property standards. In February 2016, it was reported that 60% of London renters are forced to live in unacceptable conditions. Private renters are also one of the most deprived groups with almost 25% of households at risk of fuel poverty.

ONS data revealed that single tenants in 25 of London’s 32 boroughs are spending more than half of their monthly salary – after income and council tax deductions – on rent for a one-bedroom property.

Unsurprisingly, housing affordability is worst in prime areas of the capital, with those renting a one-bedroom property in Kensington and Chelsea paying  the equivalent of 85% of the average London monthly salary on rent.

The cheapest accommodation for single tenants was in the boroughs of Bromleywell and Havering with the average rental cost for a one-bedroom home coming in at 42% of monthly salary.

Robby Du Toit, managing director of Sell House Fast commented: “As demand has consistently exceeded supply over the last few years, Londoners have unfortunately been caught up in a very competitive property market where prices haven’t always reflected fair value. This notion is demonstrated through this research whereby private rental prices in London are certainly overstretching single tenants; to the extent they must sacrifice over half their monthly salary.

“For those single tenants with ambitions to climb up the property ladder – their intentions are painfully jeopardised, as they can’t set aside a sufficient amount each month to save up for a deposit or explore better alternatives. It’s not only distressing for them but worrying for the property market as a whole – where the ‘generation rent’ notion is truly continuing too spiral further.”

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