Posts with tag: housing costs

The Most Expensive Cities to Rent a Home Around the World

Published On: April 22, 2016 at 11:11 am


Categories: Property News

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While we may consider London’s housing crisis as severe, a recent study will prove that it is not the most expensive city to rent a home in the world. So which is?

The Most Expensive Cities to Rent a Home Around the World

The Most Expensive Cities to Rent a Home Around the World

The Global Cities Business Alliance has analysed average rent prices in cities around the world as a proportion of residents’ average wages, to determine how expensive it is to rent in these areas.

The study found that all of the 15 cities studied are struggling to develop sufficient affordable housing for their growing populations.

In at number 15, Boston is the only city on the list to have an affordable average rent – housing costs should be no more than 30% of income. With a typical cost of £1,075 per month, renting in Boston accounts for 29.8% of the average earner’s wages.

In Sao Paulo, renting costs £335 a month – 30.2% of net earnings. However, the cost of rental accommodation in the city has risen sharply in recent years. The average monthly cost of renting has surged by 33.8% since 2009.

In Sydney, an average rent of £775 will eat up 32.1% of a worker’s wage, while renting in Singapore, at £721, will take up 33% of your income.

The proportion goes up in Chicago, where an average home is £961 per month, costing you 35.6% of your salary. Parisians must spend 36.2% of their earnings on renting, at £614 a month.

In at number nine is London – the average rent of £998 is around 50.4% of a Londoner’s monthly salary.

Countdown of the most expensive cities to rent a home

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You might expect the city with the highest overall rent per month, of £1,970, to be further up the list. However, wages in San Francisco are lower, putting housing costs at 50.5% of earnings.

Those living in Dubai face paying 55.4% of their wages on renting, which costs £893 per month.

The lowest rents on the list, £269, are found in Mexico City. However, low wages in the area mean housing takes up a huge 58% of residents’ salaries. People in the city also face the longest average commute, at 113 minutes per round trip.

While a rent price of £361 a month might look cheap, renters in Shanghai must spend 58.3% of their wages on housing.

Renting a property in New York City will cost you £1,834 per month, eating up 63.1% of your earnings. This goes up to 64% in Hong Kong, where the average rent price is £1,347.

In second place is Abu Dhabi, where the cost of renting a typical property, £1,716, accounts for 69.5% of a worker’s salary.

But the top spot goes to Beijing, where the average cost of housing is an astonishing 122.9% of net earnings, pricing many people out of the city. While the average home costs £551 a month to rent – by no means the highest amount – low wages put the cost of housing at an unaffordable level.

Housing Costs Causing Families to Suffer Through Winter, Warns Shelter

Published On: January 4, 2016 at 3:18 pm


Categories: Property News

Tags: ,,,

High housing costs in England are causing many families to cut back on heating and winter clothing to ensure they meet mortgage and rent payments, according to homelessness charity Shelter.

Over a quarter (27%) of parents of under-18s surveyed reported that they had to cut winter spending to meet their housing costs.

Housing Costs Causing Families to Suffer Through Winter, Warns Shelter

Housing Costs Causing Families to Suffer Through Winter, Warns Shelter

Additionally, 10% feared that they would be unable to pay rents or mortgages in January.

The Government insists that its measures to tackle the deficit are helping more people stay in their homes.

A lack of affordable homes has left families struggling with extortionate housing costs, says Shelter. Last year alone, more than 100,000 people called Shelter’s helpline for housing debt advice.

Households struggling with housing costs are advised to:

  • Seek advice as soon as possible, to avoid eviction.
  • Prioritise mortgage or rent payments before credit card or payday loan debts.
  • Seek help from mortgage lenders as early as possible.
  • Seek help with rent arrears and look into housing benefit.
  • Respond promptly to calls and letters and keep notes of conversations.

Michelle is a mother from Cambridge. Her husband Kevin is a builder who became self-employed last year. He is now paid weekly and Michelle explains the difficulties: “We cut back on everything to pay the rent, including food.”

The family is now in rent arrears to a private landlord and is behind on Council Tax. They fear that another missed payment could put them at risk of eviction.

Of the 853 parents studied, 15% said they had to cut back on Christmas presents and food.

Michelle, a student midwife, continues: “Even though my husband works as many hours as he can, it’s constantly hand-to-mouth. When the children are at school, the heating isn’t on at all, and over Christmas we had to cut back on presents and clothing.”1

A spokesperson for the Department for Communities and Local Government comments: “The reality is mortgage repossession claims continue to fall and are their lowest since 1987.

“This is thanks to our work to tackle the deficit and keep interest rates low, helping more families to stay in their hard-earned homes.

“We’ve introduced measures to ensure tenants get a fair deal and are aware of their rights. We’ve also doubled the housing budget to deliver over 400,000 affordable homes and the number of new homes is up 25% in the last year.”1

YouGov conducted the survey of a representative and weighted sample of adults late last year.