London renters are forking out up to 72 per cent of their monthly household income simply to get by in the capital’s rental market. Nationwide, that figure is even higher, up to 77 per cent.
The average UK rental household pays £808 per month in rent, accounting for 26 per cent of total monthly household income but the average household then pays a further £1,138 per month for other essential outgoings associated with the home, such as food, clothing, utilities and transport, but excluding non-essential purchases such as alcohol or other miscellaneous goods.
According to the research, carried out by Benham and Reeves, when the cost of renting and living are combined, the average UK household is forking out £1,946 each month, swallowing up 63 per cent of total income.
Of course the percentage of income required to get by differs depending on where in the UK you are renting and while London’s rental market is notoriously expensive, the capital doesn’t rank top where the issue of overall affordability is concerned.
“Although we saw rents drop across many areas of the UK during the pandemic, they’ve once again started to climb as Covid restrictions have eased and tenants have headed back to the workplace,” said Marc von Grundherr, director of Benham and Reeves.
“Inflation has caused the wider cost of living to increase considerably and this is putting additional pressure on the financial stability of those living within the rental sector.”Marc von Grundherr, director of Benham and Reeves
“While London is notoriously expensive when it comes to renting, the higher earnings available in the capital mean that it’s not the worst area of the UK when it comes to the overall cost of renting in relation to household income,” Grundherr pointed out.
|Location||Average monthly household income||Average rent per month||Additional essential outgoings||Total monthly expenditure||Monthly expenditure as a % of household income|
|Yorkshire and the Humber||£2,708||£646||£1,072||£1,718||63%|
|East of England||£3,381||£930||£1,191||£2,121||63%|
The research by Benham and Reeves shows that Northern Ireland is the least affordable place to rent in the UK. The average household rent of £703 per month combined with a wider cost of living of £1,103 sees the average rental household spend £1,806 per month to get by. This equates to 77 per cent of household income, by far the highest in the UK.
The South West ranks second, where 73 per cent of household income is required to cover the rental cost of living, with London ranking third as the only other area to see this cost exceed 72 per cent of earnings.