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...
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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.

DISCOVER THE AVERAGE COST OF RENTING IN EVERY LONDON BOROUGH:


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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