Renting in London is now technically more affordable than it was 10 years ago (Picture: Getty Images)
Living in London comes with the acceptance that you’ll be spending around half of your hard-earned paycheck on rent.
Many of us dream of a time when it was more affordable to live in the capital, and we didn’t dread the landlord’s email heralding a monthly increase.
But while the slog continues for many renters, new statistics suggest that, somehow, it’s become more affordable to rent in London over the last decade. Yes, we’re in as much disbelief as you are.
According to new figures from the Office For National Statistics (ONS), between 2022 and 2023, private renters in the capital spent 39.8% of their gross income on rent alone.
That might sound a lot, but it actually marks a decrease from the 41.8% people were paying between 2021 and 2022. It’s also technically more affordable than the period between 2014 and 2015.
Wondering how rent could possibly be more affordable when it’s still skyrocketing? It’s all about how our wages have increased in line with these rent prices — so because pay has climbed (what is said to be) sufficiently, the gap between earnings and rent has technically become more manageable.
This trend continues across the UK, with households who privately rent also spending a smaller proportion of their wages on living costs.
Private renters spent 39.8% of their gross income on rent between 2022 and 2023 (Picture: Getty)
Crunching numbers
Between 2021 and 2022, and 2022 and 2023, national spending on rent fell (albeit only slightly) from 36.5% to 34.2%, as wages started to exceed rent increases.
Despite this, the broader picture of the London housing market remains grim. As per figures from Zoopla, average rent comes in around £2,100 per month – the highest of any UK region – which marks an annual increase of 6.2%.
Likewise, recent data from SpareRoom finds that London rents have skyrocketed by an average of 32% over the last five years, from £744 to £983 per month.
However, the average Londoner takes home £41,866 per year — significantly higher than the typical UK salary of £33,000.
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Analysing postcodes across the city, the largest increases were seen in locations across the East and South East, with the most significant being in SE2 (spanning parts of Greenwich and Bexley, including Abbey Wood). Here, monthly averages have risen from £531 to £820.
Other postcodes of note include EC2 (Shoreditch and Liverpool Street, with a 53.4% increase), N9 (Edmonton and Enfield at 49.7%), and SE9 (parts of Greenwich, Bromley, Bexley and Lewisham at 49.6%).
However, these statistics are averages – and there are plenty of …read more
Source:: Metro
