Renting a home in the capital is so expensive that couples are spending 55% of their combined average monthly salary – that’s £2,460 – on renting the average three-bedroom house, new research has revealed.
The research by property crowdfunding platform Property Partner found that a couple would have to fork out £29,520 a year in rent before even budgeting for childcare and other costs.
The research compared how much it would cost as a percentage of salary for couples to step up from the average one- or two-bedroom flat into a three-bed house in all 33 London boroughs for couples with an average combined monthly income of £4,417.
The 10 least affordable boroughs were Kensington & Chelsea, Westminster, Camden,Tower Hamlets, Hammersmith & Fulham, Islington, Southwark, Hackney, Wandsworth and Lambeth. In the most expensive borough, Kensington & Chelsea, it would cost a whopping 168% – or £7,4343 – of combined salary to rent a three-bedroom house.
Couples thinking of starting a family should head to Bexley, where it would cost 29.6% of their combined monthly – or £1,311- to rent a three-bedroom house. Other more affordable boroughs include Havering, Sutton, and Barking and Dagenham.
Dan Gandesha, chief executive of Property Partner, says: "Our research will come as a shock to tenants in the capital. With London house prices now so high, the ranks of Generation Rent are rapidly expanding. And, as demand for larger rental properties has grown, finding affordable accommodation is increasingly difficult.
“Those unable to buy but hoping to start a family and move up the rental ladder may just be able to make ends meet in outer London boroughs. But the harsh reality is that they’ll be forced to bring up their children in a flat rather than a house. Although everyone knows Kensington & Chelsea, and Westminster, are totally out of reach on an average London salary, the surprise comes with Camden and Islington too. Even in the cheapest borough, Bexley, a couple would have to fork out £15,732 a year of their joint net income to pay the rent on a three-bed property.
“Another sobering thought is that our research assumes both partners are in full time employment and earning the average London salary. The figures do not take into account that if a couple has one or two children, the costs of childcare and household bills would make meeting the monthly rent unachievable,” he adds.
Average rents for one-bed, two-bed and three-bed propertis compared with rent in all 33 London boroughs
|Borough||Average rent for 1 bed flat||Rent as a % of salary for 1 bed flat||Average rent for 2 bed flat||Rent as a % of salary for 2 bed flat||Average rent for 3 bed house||Rent as a % of salary for 3 bed house|
|Barking and Dagenham||£951||21.53%||£1,205||27.28%||£1,484||33.59%|
|Kingston upon Thames||£1,127||25.51%||£1,560||35.31%||£1,901||43.03%|
|Richmond upon Thames||£1,470||33.28%||£1,932||43.74%||£2,592||58.68%|
|Hammersmith and Fulham||£1,695||38.37%||£2,389||54.08%||£2,887||65.35%|
|Kensington and Chelsea||£2,634||59.63%||£4,059||91.89%||£7,434||168.29%|
Source: Property Partner