Nine out of ten Londoners can no longer afford the rent as demand for rooms goes through the roof
Insurance giant Admiral has warned that nearly nine out of ten Londoners can no longer afford the average cost of rent in the capital.
The demand for rooms to rent is much higher than the available supply, thereby leading to such increases that most Londoners cannot keep up with, the company cited as the main reason.
In London, there are 157 people looking to rent for every 100 available rentals.
In fact, 86.5 per cent of people’s budgets are too low to afford the average cost of rent and 43.4 per cent of rentals in London are out of budget for the average renter, the firm found.
Country-wide, 52.7 per cent of people’s budgets are too low to afford the average rent in the UK with an average rental costing £553 per month in England.
Across the UK, there are 188 people looking for a place to rent per 100 available rentals.
Admiral scrutinised the country’s most popular online room rental websites, analysing over 199,000 advertised rentals to find out where in the UK people are being priced out of the rental market, and where the demand for rental properties far outstrips supply.
Rental prices vs renters’ budgets
The company found that people’s average budget was actually slightly higher than the average price of rent (£559 vs. 549), however more than half (52.7 per cent) of budgets were still too low to afford the average room rental.
In England, 52.7 per cent of people’s budgets are too low to afford the average rental with an average rent of £553 vs. an average budget of £562.
|Percentage of budgets below the average rental price|
In Bath, 87.9 per cent of people’s budgets (£565) are too low to afford the average rental (£743). London follows very close, with an average rental price of £1,058 vs. an average budget of £860.
|Top 10 cities||% of budgets below avg. rental price||Average Budget Price||Average Rental Price|
In contrast, Bradford is the UK city with the largest proportion of affordable rentals, with an average renting budget of £419 vs. an average rental price of £391.
|#||Top 10 bottom cities||% of budgets below avg. rental price||Average Budget Price||Average Rental Price|
Renters per advertised rental advertised
The analysis of rental ads in the UK found that the demand for rooms to rent is much higher than the available supply.
Per 100 rentals across the UK, there are 188 people looking for a place to rent. In London, there are 157 people looking to rent for every 100 available rentals.
|Location||Most renters per 100 rentals||Location||Fewest renters per 100 rentals|
How does London rank per demographic?
For every 100 available rooms to rent in London, 10.7 are open to renters with pets. That’s the fourth-highest proportion in the UK.
For women wanting to share with other women, London ranks in fifth place with 29.8 for every 100 on the market.
For renters who look for vegetarian-friendly rentals, London is the best option. For vegetarian-friendly rentals, looking for a room in London can save £383 per month.
|Rank||Location||Demographic||Average rental price for demographic||Average rental price in location||Price Difference||More or less than average price of rental?|