A new online estate agency in London has stated that a single person renting in the capital must earn a gross salary of at least £39,876.84 to cover accommodation and living costs.
Nested has established an index which looks at rental costs in 33 London boroughs, 15 UK cities and 72 cities worldwide. In London, to cover rental costs, a single person must earn £3,323.07 per month.
Rental Costs
For a family living in London, they must earn an average of £6,305.31 per month in order to cover rent and living costs. This equates to a gross salary of £75,663.72.
In order to work out the amount required to cover rents, Nested looked at the price per square metre based upon current market listings with the minimum space, as seen in guidelines from the Greater London Authority.
Calculations from the agency reveal that the least affordable borough to rent in the capital is Kensington and Chelsea. Rents per square metre here total £72.40 per month. As such, to afford to rent alone and cover additional living costs in Kensington and Chelsea, an individual must earn £9,736.55 per month, or £116,838.60 per year.
£40k salary required to rent in London
For a family of four to rent in this borough, a monthly income of £18,474.48 is required. This equates to an annual income of £221,693.76.
On the other hand, the most affordable London borough in which to rent is Bexley, where rents per square metre total £13.30 per month. To afford to rent alone and cover costs here, an individual must earn an income of £1,788.62 per month, or £21,463.44 per year. A family of four requires a monthly income of £3,393.79 or £40,725.48 per year.