Londoners are spending 31.5% of their income on rent, new research shows.
£1,500 is now the average monthly splurge on keeping a roof over your head, says a report from The London Intelligence. At almost a third of people's overall income, it's the highest share spent on rent recorded in London in the last four years.
And the people splashing the cash are getting younger, says the report. In 2015 the average age of a tenant was 34 years; today it's 32.
Says Silviya Barrett, Research Manager at Centre for London:
This demographic change, together with a return to rental growth and wage stagnation, means that renters need to spend more or their salary on rent. When a third of your income goes on putting a roof over your head, living in London is tough.
London rent fees had previously been stagnant. The Independent reported in June 2018 on the first rise in almost two years.
Any good news from this then? Well, the prolonged period of slow growth in the market has led to the highest number of first-time buyers in London, since 2015.
But that's not to say the market is anything near affordable.
Barking and Dagenham remains the cheapest borough to buy a house — average prices are £315,500. Kensington and Chelsea is (surprise) the priciest borough, with houses averaging £2,116,000. Our advice: cutting down on the monthly avocado bill probably isn't going to get your dream home — rented or otherwise.
