Tenants in Camden are spending the highest proportion of their salaries on rent of any London boroughs, according to a new study by OnTheMarket.com.
The property portal found that, when renting a one-bedroom property in Camden, 61% (£1,944,28) of the average tenant’s salary is spent on rent. For a two-bed, this drops to 46% (£1,471,05), while a three-bed eats up 51% (£1,614,44). Four-bed homes will eat up 60% of a tenant’s rent (£1,911,65). These percentages are based on one tenant per bedroom.
The average gross salary of tenants in Camden is £3,181.17 per month.
However, the data shows that Camden does not, in fact, boast the highest average rent price in London. Instead, it is the borough where private tenants are spending the highest proportion of their wages on rent, in relation to the average salary for that specific borough.
Tenants in Camden Spending Most on Rent of any London Borough
Kingston upon Thames is the borough with the lowest percentage of earnings spent on rent across the capital. The average gross salary of a tenant in the borough is £4,352.78 per month.
When renting a one-bed property in Kingston upon Thames, the percentage spent on rent is 25% (£1,099.15), while a two-bed is 17% (£740.65). A three-bed is 15% (£648.55) and a four-bed is 14% (£627.40). This also assumes one tenant per bedroom.
Vikki Bennett, the Spokesperson for OnTheMarket.com, says: “Costs within the London rental market have been driven up in recent years, as first time buyers have battled to enter the housing market and second steppers have struggled to trade up while prices have risen.
“While it’s no surprise that cost remains the most likely primary factor when considering a new home, our analysis shows some stark variations across each borough of salary percentages being spent on rent. So, while London rents remain high across the board, considering all available options, such as moving to a nearby borough just a few miles away, can prove to have significant cost savings.”
She points out: “Hampstead, within the borough of Camden, is likely to be of high significance as to why Camden comes out with the highest percentage, due to the exceptionally high rental prices within this particular area.”
Mark Birch, the Director of Lettings at estate agent Jackson-Stops in Teddington, looks at Kingston: “Kingston upon Thames is an ancient market town located on the banks of the River Thames and nestled between London’s two largest Royal Parks. It’s an attractive place to rent for many people, offering many things such as great shopping and leafy walks in beautiful parkland. It is also cheaper than neighbouring areas, such as Richmond.
“It’s easy to see why so many commuters might choose to settle here and benefit from being outside the hubbub, while remaining close enough to connecting transport links into London.”
And Charlie Benn, the Director of Lettings at Bexley estate agent Anthony Martin, also comments: “It takes around 45 minutes to an hour to get from Bexley into central London. This is ideal for city workers, especially at a time where two-hour commutes are on the rise.
“City workers living in Bexley are in easy reach of central London, while also benefitting from the affordable rental prices.”
They add: “This makes Bexley attractive to those working in the City who want to keep a higher percentage of their salary for disposable income!
“Next year, the borough will be within an easy commute to the highly anticipated Crossrail Link (at Abbey Wood), providing even more time saving commutes.”