Young tenants spend 57% of post-tax income on rent
New research shows the average cost of renting a one-bed home in the capital is now £1133 per month
Single working tenants aged between 22 and 29 years old spend 48% of their post-tax income on renting a one-bedroom home, according to new figures.
However, tenants in London pay landlords 57% of their post-tax income on rent.
This is a 16 percentage point increase compared with 2007, when 41% of post-tax income went on rent for 22-29 year olds.
Rent prices in London have increased by 48% since 2007, with the average cost of a one-bed home in the capital now £1133 per month. Rent is £746 per month for a one-bed home in the rest of Britain – 27% higher than 2007.
This explains why in north-east England, for example, the cost of renting a one-bed home accounts for just over a third of a twentysomething’s post-tax income, down from 42% in 2007.
In Wales, 42% of a young renter’s post-tax income is spent on rent on average, up from 35% in 2007.
The findings are based on Office for National Statistics data.
Last year, the English Housing Survey reported that tenants in London in receipt of housing benefit spent 60% of their gross earnings on rent. This figure rose to 72% for tenants in the capital not claiming housing benefit.
Responding to the latest data, a Department for Communities and Local Government spokesman says: “The vast majority of tenants across the country are seeing their rents remain stable, and are happy with the service they receive from landlords.”
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