You are here: Home - Mortgages - Buy To Let - News -

Londoners shrink property size to keep living costs down

Written by:

London renters are only prepared to spend slightly more of their gross monthly salary on rent than the rest of the UK but will compromise on size to keep living costs down.

A study from property agents Knight Frank revealed that Londoners would pay up to 42 per cent of their gross monthly wage on rent compared to 40 per cent elsewhere in Britain.

But respondents in London said they would settle for living in a smaller property to be based in a good location at a price they could afford.

More than half (54 per cent) of 18 to 24-year-olds in London said they were would be happy to live in a studio flat with communal entertaining space if it allowed them to live in a central area at an affordable price. Meanwhile 42 per cent of 35 to 44-year-olds and 39 per cent of 25 to 34-year-olds said they would shrink down their home to live centrally. Across the UK the national average of those prepared to live in a studio flat for a more central location was 37 per cent.

Londoners placed a greater emphasis on living close to transport links when choosing a property to rent. Nearly two-thirds (63 per cent) of London tenants surveyed wanted to be within a nine minute walk of a transport link such as the bus stop, tube or train station, compared to 51 per cent of tenants surveyed across Britain.

Attitudes towards renting were also revealed to be different within the capital. When asked why they were living in the private rental sector, 56 per cent of 18 to 24-year-olds in London said the rental sector suited their lifestyle and they didn’t want a mortgage.

Nearly a third (30 per cent) of 25 to 34 year-olds in London felt the same while 27 per cent of 35 to 44-year-olds gave the same reply. Across the UK, 33 per cent of respondents said it was a lifestyle choice.

In its report Knight Frank said: “The private rented sector is growing in London and across the UK. While this is undoubtedly linked to trends in house prices the sector is also expanding amid a demand for a more flexible workforce in key urban areas.

“As London plays a major role in the UK in terms of job creation, and is likely to continue to do so, the private rented sector looks set to be underpinned by well-designed stock at the right price point in locations close to transport links.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week