Renting in London: no respite for tenants spending half their income on rent

There's no let-up in the capital as renters spend more than half their income on rent - and deposits continue to soar out of reach...
Renters spend more than half their income paying for the privilege of living in London, according to exclusive new data from Savills. The estate agent reveals that a typical renter hands over 59.4 per cent of their wage to their landlord.

To add insult to injury — and largely thanks to low interest rates — those who own a home in London use up only a quarter of their income on paying for their loan. The study also shows what it takes to buy a first property. 

The median household income of London’s first time buyers is now £58,600 and increasing fast — last year it was £55,600. But while first-time buyer average salaries are increasing, the size of mortgage deposits has skyrocketed within the past 15 years.


In 2000, an average first time buyer deposit in London was £10,000, or 32 per cent of their average salary.

By 2005, deposit costs had more than doubled to £21,000, or 43 per cent of the average first-time income.

By 2010, deposits had more than doubled again to £56,000, or 118 per cent of an average annual first-time salary. Today average deposits stand at £74,000, or 127 per cent of a first-timer’s wage packet.

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

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