The sky-high cost of renting a property in London is pushing more and more tenants into living in shared accommodation, Spotahome reports.
The online rental property portal highlights recent figures from the Office for National Statistics (ONS), which show that the average private rent price paid by tenants in London rose by 0.4% in 2017, stretching the budget of the typical tenant.
Further insights from the LSL Rental Index found that London rents are the highest in the country, with an average monthly price of £1,280. As the average salary ranges between £34,894-£37,500 in the capital, London tenants can expect to spend almost half of their income on rent. This excludes the additional expenses that renters face, such as bills and Council Tax, making private renting a costly expense for the typical Londoner.
Increasing rents are leading to tenants looking for alternative housing options, such as shared accommodation. In sharp contrast to the average cost of a London property, the average rent on a room in a shared home is £782 per month – a marked saving. People who opt to live in shared accommodation can save almost £500 a month – an annual reduction of just under £6,000 when compared to the typical rental property.
Adriana Carnerero, a user of Spotahome, shares her story: “When I moved to London, I initially wanted my own apartment. However, there was no way that I could afford a studio or a one-bedroom apartment on my salary. A friend recommended that I try living in a shared apartment. At first, I was concerned about living with strangers, but I’m actually living with some incredible people.”
The CEO of Spotahome, Alejandro Artacho, comments: “The rising cost of accommodation is often a major point of contention for many Londoners, and, for people choosing to move to the city from abroad, the cost of rent can be a real shock. Across all of the European cities that we operate in, London has some of the highest rental asking prices.
“Continually rising rents are pushing professionals to their breaking point. As a result, we are seeing growing numbers of people looking for cheaper alternatives, with a particular desire for shared accommodation.”
Landlords, if you let to tenants in London, we remind you to consider ways of protecting your income against potential rent arrears. With so many tenants struggling with their rental costs, Rent Guarantee Insurance is more important than ever.
We offer a standard 12-month policy at just £139, including Insurance Premium Tax (IPT). Get cover online here: https://www.justlandlords.co.uk/rentguaranteeinsurance