Connect with us

Hi, what are you looking for?

Life

Rental costs in London reach two-thirds of average incomes

Hertsmere is located in Hertfordshire. Average rents here are £1,250 a month, 57.02 percent of earnings.

Draconian prerequisites to rent in New York aren't new: earn income 40 times the monthly rent, have perfect credit history, present the last two years of tax returns and current bank balances
Draconian prerequisites to rent in New York aren't new: earn income 40 times the monthly rent, have perfect credit history, present the last two years of tax returns and current bank balances - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Drew Angerer
Draconian prerequisites to rent in New York aren't new: earn income 40 times the monthly rent, have perfect credit history, present the last two years of tax returns and current bank balances - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Drew Angerer

The U.K. is perhaps now defined as ‘generation rent’ as the proportion of people aged below 35 years are renting properties rather than owning their own homes continues to rise. I general terms, those renting exceed owner occupiers for the U.K. as a whole.

A new study has examined the least affordable areas for renting in the U.K., with rental properties in London costing the most, on average.

The study by money.co.uk sourced average rent prices and incomes from U.K. government’s Office for National Statistics (ONS) to calculate rent prices as a percentage of monthly income, to reveal the least affordable areas to rent in the U.K. in general and in London specifically.

The least affordable areas to rent 

RankAreaRegionAverage monthly rentAverage monthly income (gross)Rent as % of income
1Kensington and ChelseaLondon£2,199£3,297.1767%
2HackneyLondon£1,600£2,432.8366%
3BrentLondon£1,450£2,294.2563%
4WestminsterLondon£2,000£3,297.0061%
5MertonLondon£1,475£2,474.6760%
5HaringeyLondon£1,425£2,390.4260%
5CamdenLondon£1,750£2,930.6760%
5HounslowLondon£1,350£2,235.0860%
9IslingtonLondon£1,700£2,902.7559%
10EalingLondon£1,400£2,416.3358%

The table above reveals that Kensington and Chelsea is the least affordable area to rent in the U.K. It has the highest monthly earnings in the country (£3,297.17), as well as the highest average rent (£2,716). This means that people renting here pay around two-thirds of their income on rent.

In second place is Hackney, where rent makes up 65.8 percent of the average monthly income. Hackney has undergone significant gentrification in recent years, attracting many young workers to the area. Like many other parts of the capital, it also benefited from hosting the 2012 London Olympics, with many of the venues in the borough.

Unsurprisingly, another London borough completes the top three least affordable areas for renting.Average rent prices in Brent are £1,450, which makes up 63.2% of the average monthly income. Brent has both inner-city and suburban areas and its best-known landmark is Wembley, the country’s largest sports stadium.

Westminster in London, is the area in the UK with the highest percentage of rental properties, with 42.55 percent of homes being privately rented.

The least affordable areas to rent (outside of London)

RankAreaRegionAverage monthly rentAverage monthly income (gross)Rent as % of income
1HertsmereEast of England£1,250£2,192.1757%
2HarlowEast of England£1,123£2,124.0853%
2Epsom and EwellSouth East£1,300£2,458.9253%
4OxfordSouth East£1,275£2,456.8352%
4Bath and North East SomersetSouth West£1,050£2,022.4252%
4Epping ForestEast of England£1,250£2,393.4252%
7BrentwoodEast of England£1,150£2,276.4251%
7Three RiversEast of England£1,250£2,438.8351%
9BristolSouth West£1,125£2,262.5850%
9Brighton and HoveSouth East£1,100£2,206.4250%

The second table reveals the least affordable area for renters outside of London, and it borders London. Hertsmere is located in Hertfordshire. Average rents here are £1,250 a month, 57.02 percent of earnings.

The second-least affordable area for renters outside the capital is the area surrounding the two Surrey towns of Epsom and Ewell. Unsurprisingly, like Hertsmere, the area is located right outside of London, with rent making up 52.87% of the average monthly income.

In joint second place is Harlow, another town that borders London. Harlow was founded as a ‘new town’ after World War II to help ease overcrowding in the capital. Today it’s an important part of the London commuter belt, and has undergone lots of redevelopment.

At the other end of the scale, Copeland in the North West is the most affordable place to rent, with rent costing 18 percent of a monthly salary on average (although this is an area not know for high wage rates). 

Avatar photo
Written By

Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, business, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.

You may also like:

World

When Joe Biden meets world leaders at a lavish Italian resort he will be shadowed by an invisible and, for now, uninvited guest: Donald...

Business

US consumer inflation data is unlikely to sway the Federal Reserve, which is widely expected to leave its key lending rate unchanged.

Life

Toshihide Takase, 76, says he is "the only person in the world" breeding this specific delicacy after four decades of trial and error.

Business

The pioneering innovation conference wraps up its second day in Calgary before moving east to Toronto for its fall event.