London Tenants are Spending Half of Their Income on Rent

Tenants in London are having to spend more than half of their income on rent, according to the latest figures from Savills. But how does this compare to what the property owners are paying in mortgage repayments?

In the capital, the average renter spends over 59.4% of their monthly wage on rent. However, property owners in London, including homeowners and landlords, pay just a quarter of their monthly income on repaying their loan.

The average rent for a one-bedroom property in 18 out of London’s 33 boroughs is now over £1,000 per month.

The cost of renting in each London borough

Borough

Average monthly rent for one-bed flat Average monthly rent for two-bed flat Average monthly rent for three-bed flat

Proportion of private rental housing

Bexley £700 £900 £1,200 11.4%
Havering £702 £925 £1,100 10.6%
Barking and Dagenham £750 £950 £1,200 17.7%
Sutton £800 £1,099 £1,350 15.9%
Redbridge £850 £1,100 £1,400 22.9%
Croydon £840 £1,100 £1,300 21%
Hillingdon £850 £1,150 £1,350 18.1%
Bromley £850 £1,150 £1,400 13.3%
Waltham Forest £900 £1,200 £1,450 25.9%
Newham £900 £1,200 £1,400 34.1%
Enfield £900 £1,200 £1,450 22.2%
Lewisham £950 £1,200 £1,500 24.3%
Hounslow £1,050 £1,225 £1,450 23.4%
Harrow £950 £1,225 £1,500 21.7%
Greenwich £975 £1,250 £1,400 19.8%
Kingston upon Thames £995 £1,300 £1,600 22.5%
Barnet £1,040 £1,300 £1,690 25.6%
Merton £1,080 £1,350 £1,600 24.8%
Brent £1,100 £1,365 £1,675 30.1%
Ealing £1,150 £1,375 £1,700 27.5%
Haringey £1,170 £1,408 £1,733 31.5%
Lambeth £1,235 £1,500 £2,037 29.3%
Richmond upon Thames £1,200 £1,500 £2,150 21.8%
Southwark £1,250 £1,517 £1,889 23.7%
Wandsworth £1,322 £1,600 £2,100 31.7%
Tower Hamlets £1,300 £1,603 £2,080 32.6%
Hackney £1,300 £1,690 £2,188 29%
Hammersmith and Fulham £1,343 £1,712 £2,383 31.7%
Islington £1,452 £1,907 £2,492 27%
Camden £1,517 £1,950 £2,817 32.2%
City of London £1,842 £2,492 N/A 35.9%
Westminster £1,950 £2,708 £4,054 39.7%
Kensington and Chelsea £1,950 £2,708 £5,108 35.8%
London Tenants are Spending Half of Their Income on Rent

London Tenants are Spending Half of Their Income on Rent

The research also discovered how much a first time buyer really needs in the capital.

The median household income of London’s first time buyers is £58,600, and rising fast – last year it was £55,600. However, despite the average salary increasing, the required deposit has soared in the last 15 years.

In 2000, the average first time buyer deposit in the capital was £10,000, equivalent to 32% of the typical salary.

By 2005, deposits had more than doubled, reaching £21,000, or 43% of the average first time buyer’s income.

Just five years later, in 2010, it had more than doubled again to £56,000, or 118% of a first time buyer’s wages.

Today, the average deposit for a first time buyer home is £74,000, or 127% of a first timer’s earnings.

 

©2017 Just Landlords

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