Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers
Renting must remain a feasible choice for those hoping to move home, yet occupants might need to consider a market that offers a lot of incentives for first time buying
A one-bedroom apartment in London is costing renters almost half of their monthly salary, despite reports of a more favourable London rental market.
It is not unsual for a one bedroom apartment in London to cost its renters half of their monthly salary.
According from new research from Barratt London, London ranks just behind San Francisco as one of the most expensive cities in which to rent.
Based on average salary (Percentage of wage spent on rent)
- San Francisco 47%
- London 45%
- Hong Kong 44%
- Tokyo 42%
Average price of a one bedroom apartment to rent per month and percentage of wage spent
- New York – ($4,225/£2,532) – (40% of wage spent)
- Sydney – (AU$2,600/£1,558) – (28% of wage spent)
- London- (£1,250) – (45% of wage spent)
A spokesperson for Barratt London said: “Rental prices in London continue to demand too much of the occupier, to the extent of almost half of their monthly pay cheque. Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers. The London Help to Buy scheme, for example, is helping first-time buyers get on the property ladder more affordably, with just a 5% deposit and an equity loan that is interest-free for the first five years.”
Despite high rental prices, London’s home ownership rate (38%) falls well below other cities around the world. In Singapore, where rent demands 40% of average salaries, more than 90% of people own their own home. In Rome, where the wage to rent ratio is the same, home ownership is at 73%.
Notwithstanding high rental costs, London’s home ownership rate (38%) falls well underneath different cities around the globe. In Singapore, where rent requires 40% of average salaries, over 90% of individuals own their own home. In Rome, where the wage to rent proportion is the same, home ownership is at 73%.
