Cost of an average three-bed rental home in London is £30,000 a year
Couples in London who are renting and wanting to start a family would need to fork out 55.6% (£2,460) of their combined average monthly salary to rent an average three-bed property, according to research by Property Partner.
The property crowdfunding platform said that in one year, that would mean a couple would have to pay £29,520 in rent alone before even thinking about childcare and other costs.
The research reveals that Generation Rent is facing an almost impossible task to rent larger properties in London. In Kensington and Chelsea – the least affordable borough to rent – an average one-bed flat would cost tenants more than 59% (£2,634) of their combined net monthly earnings, twice the London average (£1,311). That rises to 92% (£4,059) for a two-bed flat, and 168% (£7,434) for a three-bed house.
Couples planning to start families face difficulties even in the more affordable outer London boroughs. To rent a two-bed flat in Bexley, Havering, Sutton, Barking and Dagenham, Bromley, Croydon, and Redbridge would eat up less than 30% of a couple’s combined salary. But tenants aspiring to move into a three-bed house and looking to spend less than 30% of their combined salary would only have the option of Bexley, for £1,311 a month.
Dan Gandesha, CEO of Property Partner, said: “Our research will come as a shock to tenants in the capital. With London house prices now so high, the ranks of Generation Rent are rapidly expanding. And, as demand for larger rental properties has grown, finding affordable accommodation is increasingly difficult.
“Those unable to buy but hoping to start a family and move up the rental ladder may just be able to make ends meet in outer London boroughs. But the harsh reality is that they’ll be forced to bring up their children in a flat rather than a house. Although everyone knows Kensington and Chelsea, and Westminster, are totally out of reach on an average London salary, the surprise comes with Camden and Islington too.
“Even in the cheapest borough, Bexley, a couple would have to fork out £15,732 a year of their joint net income to pay the rent on a three-bed.”