Posts with tag: renting in london

London the second most expensive city in the world to rent a property

Published On: March 7, 2017 at 9:39 am


Categories: Property News

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A new study has revealed that London is the second most expensive city in which to rent a property in the world.

The English capital stands only behind San Francisco in the expense stakes, according to a new report from Barratt London.

Rising Rents

Tenants in the capital are now paying on average, half of their monthly salary to rent a one-bedroom flat. On average, the price of this kind of accommodation in London is £1,250pcm.

Despite this falling below the £2,532 seen in New York and £1,558 in Sydney, Londoners are paying more based on average salary and average rental prices. Typically, Londoners spend 45% of their wages on rent, second only to the 47% paid by those in San Francisco.

A Barratt London spokesman said: ‘Rental prices in London continue to demand too much of the occupier, to the extent of almost half of their monthly pay cheque. Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers.’[1]

London is the second most expensive city in which to rent in the world

London is the second most expensive city in which to rent in the world

‘The London Help to Buy scheme, for example, is helping first-time buyers get on the property ladder more affordably, with just a 5% deposit and an equity loan that is interest-free for the first five years,’ the spokesperson added.[1]



£40k salary required to rent alone in London

Published On: February 16, 2017 at 10:00 am


Categories: Property News

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A new online estate agency in London has stated that a single person renting in the capital must earn a gross salary of at least £39,876.84 to cover accommodation and living costs.

Nested has established an index which looks at rental costs in 33 London boroughs, 15 UK cities and 72 cities worldwide. In London, to cover rental costs, a single person must earn £3,323.07 per month.

Rental Costs

For a family living in London, they must earn an average of £6,305.31 per month in order to cover rent and living costs. This equates to a gross salary of £75,663.72.

In order to work out the amount required to cover rents, Nested looked at the price per square metre based upon current market listings with the minimum space, as seen in guidelines from the Greater London Authority.

Calculations from the agency reveal that the least affordable borough to rent in the capital is Kensington and Chelsea. Rents per square metre here total £72.40 per month. As such, to afford to rent alone and cover additional living costs in Kensington and Chelsea, an individual must earn £9,736.55 per month, or £116,838.60 per year.

£40k salary required to rent in London

£40k salary required to rent in London

For a family of four to rent in this borough, a monthly income of £18,474.48 is required. This equates to an annual income of £221,693.76.

On the other hand, the most affordable London borough in which to rent is Bexley, where rents per square metre total £13.30 per month. To afford to rent alone and cover costs here, an individual must earn an income of £1,788.62 per month, or £21,463.44 per year. A family of four requires a monthly income of £3,393.79 or £40,725.48 per year.

London Living Rent to help renters save for a deposit

Published On: September 20, 2016 at 11:32 am


Categories: Property News

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Details of plans for a new type of tenancy for new build, affordable homes in London have been confirmed by the new Mayor, Sadiq Khan.

The programme-London Living Rent-has been proposed in order to assist average earners in the capital save for a tenancy deposit. This is through offering them a below market rent, based on a third of average household incomes in each London borough.


These homes will be offered to both low and middle-income households, earning between £35,000 and £45,000 per year and currently renting. It is forecasted that in London, this will see rents for a two bed flat fall below £1,000, in comparison to average rents of £1,450.

In addition, Mr Khan has put forwards his intention to protect the capital’s stock of social housing for people in low incomes. Khan has pledged to work closely with housing associations and boroughs to deliver these homes.

‘We know that fixing London’s housing crisis won’t happen overnight and we need to do everything we can to help Londoners who are struggling to pay their rents. That’s why I’m working with housing associations and councils to build new homes for London Living Rent, homes that will offer hard working, low and middle income families an alternative to renting privately so they can get by and save for a deposit.’[1]

London Living Rent to help renters save for a deposit

London Living Rent to help renters save for a deposit


David Montague, chief executive of L&Q and chair of G15, believes firms are committed to working with Mr Khan to make London more affordable for renters.

Montague said, ‘we want to provide new homes in a way which doesn’t involve setting rents beyond the reach of ordinary Londoners. This can be achieved as part of a mainstream grant funded affordable housing and regeneration programme in which housing associations retain flexibility over rents and asset management. A new agreement could include a move away from rent conversions on existing social rented homes where we agree that these homes are fit for purpose.’[1]

The new Mayor of Hackney, Phil Glanville, said he has already made a pledge that Hackney will be the first borough to build 500 homes for London Living Rent. He noted: ‘Hackney is already building more social housing than anywhere else in the capital, but it’s also vital that there are more homes which Londoners on middle incomes can afford to rent and buy.’[1]

‘The London Living Rent will help people who work hard but are getting priced out of our city, which is why I’m proud that my first act as Mayor is to pledge that Hackney will be the first borough to see 500 homes built at this affordable level. We must make sure that all the people who make London the world’s greatest city, whatever their background can afford to live here and take advantage of its opportunities, so I’m delighted to be working with Sadiq Khan to help make that happen,’ he added.[1]



£500 a Month Room Rents in London Now Extinct

Published On: August 17, 2016 at 10:38 am


Categories: Property News

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£500 a Month Room Rents in London Now Extinct

£500 a Month Room Rents in London Now Extinct

It is now impossible to find £500 per month room rents in London, according to estate agent Portico.

The London estate agent found that although average rents dropped by 1.7% in London following the Brexit (between May to July), rents of £500 a month for a two-bedroom property in the capital are now extinct.

Portico’s data found that Bexley is the cheapest borough in London to rent a room, with the average rent price for a two-bedroom property in July standing at £1,108 a month, or £554 per room.

And tenants will pay even more if they live alone: Even in the most affordable borough, the average rent on a one-bed property in Bexley is £847.

On the other end of the scale, if you’re looking to live in the exclusive borough of Kensington and Chelsea, you’ll have to fork out a huge £3,989 a month in rent on a two-bed home, or £1,995 per room.

Across the capital as a whole, the average monthly rent on a two-bed property is £1,756, or £878 per room.

Average monthly rent for a two-bed property in all London boroughs

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The Managing Director of Portico, Robert Nichols, comments: “Many Londoners now consider renting as a long-term norm, as a result of rising property prices. It’s therefore good to know where you can find the most affordable rent – and our data lists the London boroughs’ two-bedroom rental prices from the cheapest to the most expensive.

“Bexley in southeast (£1,108) and Havering (£1,156) in the east offer the capital’s cheapest rents, and they’re soon to become well connected too, with stations planned on the eastern edge of the Elizabeth line. If you want to live in inner London, Lewisham offers the most affordable rent (£1,430).”

The latest figures from the estate agent further highlight the problem of sky-high rents in London.

Landlord Ordered to Repay £70,000 in Rent

Published On: October 26, 2015 at 10:59 am


Categories: Landlord News

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A rogue landlord has been ordered to repay £70,000 in rent under the Proceeds of Crime Act, after renting out a substandard basement as housing.

Islington Council, which took Andrew Panayi to court, initially sought a confiscation order of £103,000, equivalent to 14 years worth of rent.

The council, Labour leader Jeremy Corbyn’s constituency, states that it will tackle other landlords where necessary.

Landlord Ordered to Repay £70,000 in Rent

Landlord Ordered to Repay £70,000 in Rent

Panayi rents out a large portfolio in the north London borough. He is notorious for letting out very small properties.

In this particular case, the basement below a café was priced at £975 per month.

Panayi pleaded guilty to letting the unlicensed basement, despite an earlier enforcement notice that it was “an unsatisfactory and substandard unit of residential accommodation… with inadequate light and outlook and poor living environment”1.

He was also fined £2,000 and ordered to pay costs of £16,000 by a judge at Blackfriars Crown Court.

Panayi rented the space for 14 years after purchasing the property in 2000. In court, he claimed that he did not know council inspectors had ruled that it should not be used as a self-contained accommodation unit.

Company information reports state that Panayi’s firm, Ploughcane, has a net worth of £2.3m.

Joseph Reeve, representing Panayi, says: “His position remains that he was unaware of the existence of the enforcement notice because he was not notified about this by his solicitors at the time the property was purchased.

“It was accepted by the prosecution and the court that this was far removed from matters involving a criminal lifestyle. This was not the case here. The only benefit my client gained was receipt of rent, which was repaid.”1 

Islington Council’s Executive Member for Housing, Councillor James Murray, comments on the case: “More and more people in Islington are renting privately, and we are determined to help make sure they have decent homes to live in.

“Most landlords act lawfully, but when rogue landlords break the rules, we will go after them.”1

The council has already identified Panayi as renting out substandard homes. Last year, 19 of his bedsits above a McDonalds were declared a category one hazard.


One in Five Tenants Struggle to Pay the Rent

Published On: October 21, 2015 at 1:07 pm


Categories: Finance News

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New research has revealed that millions of workers are struggling to cope with living costs due to spiralling rent prices.

According to the study by the New Policy Institute, one in five Britons live below the poverty line once housing costs are taken into account.

The issue is affecting Londoners the most, with one in four tenants in the capital hit by sky-high rents.

One in Five Tenants Struggle to Pay the Rent

One in Five Tenants Struggle to Pay the Rent

This includes 1.2m who live in working households, a huge rise over the last ten years.

One renter finding life in the capital too difficult is primary school teacher Anna Evans. The 25-year-old pays £720 per month for a house in Balham, south London, which she shares with five other tenants.

A graduate of law from the University of Birmingham, Anna says she may have to move out of London, as living costs are so high.

“I pay more than half my salary in rent,” she explains. “I just don’t have a chance to save any money.”1

Her flatmate, Joanne Wheildon is also 25 and a trainee trader. She adds: “I won’t be able to buy a house until someone I’m related to dies.”1

Rents around the UK have risen by 11% in the last five years, reaching an average of £770 a month, found the study funded by anti-poverty charity Trust For London.

Over the same period, wages have only increased by 4%. In the last decade, this has caused a 30% rise in the amount of working-age people in poverty.

In London, the average rent price has grown by 19% in the last five years, hitting £1,600 a month.

Around 860,000 private tenants in the capital are believed to be living in poverty, including 260,000 children – twice the number recorded ten years ago.

The amount of low-paid jobs has increased for the fifth consecutive year, with one in five members of staff earning less than the London living wage of £9.15 an hour.

Another worker hit by high rents is Marianna Long, an executive assistant earning £21,000 per year.

The 23-year-old pays £500 a month for a room she shares with her boyfriend in Brixton, south London.

She comments: “The rent means I absolutely cannot save. Everything goes on living expenses and paying off an overdraft from being at university in London.”1 

Chelsea Wood, a forensic scientist, also earns £21,000. She pays £700 in rent for a flatshare in Clapham, southwest London.

The 24-year-old says: “I spend so much on rent that I feel as if I am living in poverty. A lot of my friends feel the same.”1

The researchers define poverty as having a household income that is under 60% of the national median.

1 Radnedge, A. (2015) ‘Workers caught in poverty trap by soaring rent’, Metro, 21 October, p.1-6