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Rent You Can Afford

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Affordability Calculator

Formula: Your Salary ÷ 2.5 ÷ 12 = Your Monthly Affordable Rent

*This is for guidance only and not an authority ruling on the actual credit referencing

outcome.

Salary Affordable Monthly Rent

£10,000.00 £333.33

£12,500.00 £416.67

£15,000.00 £500.00

£17,500.00 £583.33

£20,000.00 £666.67

£22,500.00 £750.00

£25,000.00 £833.33

£27,500.00 £916.67

£30,000.00 £1,000.00

£32,500.00 £1,083.33

£35,000.00 £1,166.67

£37,500.00 £1,250.00

£40,000.00 £1,333.33

£42,500.00 £1,416.67

£45,000.00 £1,500.00

£47,500.00 £1,583.33

£50,000.00 £1,666.67

Affordability Calculator

Formula: Your Salary ÷ 2.5 ÷ 12 = Your Monthly Affordable Rent

*This is for guidance only and not an authority ruling on the actual credit referencing

outcome.

Taken from a local LA website

LHA is £144.23 for a 3 bed place a week or 624.99 a month.

LHA round here is going to £494 for a 3 bed place

£114.23 a week

So that would be in line with people earning £15k or less...

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Affordability Calculator

Formula: Your Salary ÷ 2.5 ÷ 12 = Your Monthly Affordable Rent

*This is for guidance only and not an authority ruling on the actual credit referencing

outcome.

Salary Affordable Monthly Rent

£10,000.00 £333.33

£12,500.00 £416.67

£15,000.00 £500.00

£17,500.00 £583.33

£20,000.00 £666.67

£22,500.00 £750.00

£25,000.00 £833.33

£27,500.00 £916.67

£30,000.00 £1,000.00

£32,500.00 £1,083.33

£35,000.00 £1,166.67

£37,500.00 £1,250.00

£40,000.00 £1,333.33

£42,500.00 £1,416.67

£45,000.00 £1,500.00

£47,500.00 £1,583.33

£50,000.00 £1,666.67

Affordability Calculator

Formula: Your Salary ÷ 2.5 ÷ 12 = Your Monthly Affordable Rent

*This is for guidance only and not an authority ruling on the actual credit referencing

outcome.

Taken from a local LA website

LHA is £144.23 for a 3 bed place a week or 624.99 a month.

LHA round here is going to £494 for a 3 bed place

£114.23 a week

So that would be in line with people earning £15k or less...

Thes figures are simply wrong.

Imagine someone on £50K. Their take home pay after Income Tax, NI and pensions deductions is no more than 66% of their gross pay or around £33K. Paying £1.67K rent a month would be £20K per year. So they will be left with £13K for everything else including food, fuel, bills, saving etc?

No way.

Edit: Ditto at the lower end. £500 pcm = £6K pa. A salary of £15K will have take home of £13K allowing for £7K personal income allowance. So that leaves £7K to live of per year.

The LA needs to join the real world.

Edited by 888

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Seems bloody expensive to me.

The rent on my place is about 2/3rds of their suggested level from my salary. If I was actually paying that I'd be pretty poor, I would say. Fortunately I go halves with my other half, which means what I pay is more like 1/4 of their suggested rent.

It looks like the cheeky buggers expect people to pay over half their net income to parasites.

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Guess that is why no one has any money to spend then. On the other hand, how the hell are you supposed to save money if its all getting spunked on rent?

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Guess that is why no one has any money to spend then. On the other hand, how the hell are you supposed to save money if its all getting spunked on rent?

Get spunked as a rent boy?

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Seems bloody expensive to me.

The rent on my place is about 2/3rds of their suggested level from my salary. If I was actually paying that I'd be pretty poor, I would say. Fortunately I go halves with my other half, which means what I pay is more like 1/4 of their suggested rent.

It looks like the cheeky buggers expect people to pay over half their net income to parasites.

Really? What are you spending all your money on? My rent is also about 2/3 that, but I can't say I'd be poor. I'd be in more trouble long term if I paid that much; I wouldn't be able to save much (and would have to do without some luxuries) but I wouldn't be worrying about survival, and facing starvation and / or freezing, which IMO is what being poor is. And that's living on my own without an other half to contribute towards the rent.

Agree with the general thrust about those figures being more than it's sensible for someone on those incomes to pay though.

Edit to add: They probably aren't too far off what you should budget for paying a mortgage, assuming a big interest rate rise.

Edited by Riedquat

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laugh.gif at those figures.

Are they seriously suggesting that someone earning £30k, who would take home somewhere in the region of £1800 per month, should spend £1000 of that on rent!?

Absoloute madness...

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laugh.gif at those figures.

Are they seriously suggesting that someone earning £30k, who would take home somewhere in the region of £1800 per month, should spend £1000 of that on rent!?

Absoloute madness...

Methinks that this affordability table is some sort of Inside Job, whereby they can justify large HB payments to landlords.

Which is yet again why we need to do away with Housing Benefit, it has just mutated into one big scam.

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Really? What are you spending all your money on? My rent is also about 2/3 that, but I can't say I'd be poor.

I like to save as much as poss yet enjoy life as well, as life is for enjoying. I think I tuck away about 200-300 a month normally and basically want for nothing when it comes to beer tokens and iCrap. If I had to pay just over 50% of my take home pay on rent, something would give, either the saving or the beer tokens, and all to line a rentiers pockets. No thanks.

£200 commuting costs a month don't exactly help but there's nothing much I can do about that beyond moving.

I always try to pay the absolute minimum in rent though - some people like a fly pad, but I don't really care so tend to get the cheapest available. To an extent its a matter of taste I guess, but I'd never rent anything even remotely expensive, just seems a waste of money to me.

Fortunately my other half is not dissimilar, though with two of us living together we obviously need a reasonably sized flat at a minimum.

Edited by EUBanana

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It looks like the cheeky buggers expect people to pay over half their net income to parasites.

For every £3 you earn, £1 is to go to the government, £1 is to go to the landlord, £1 is for you to live on. This is the world they want us to live in. Funnily enough, the governments and landlords who run the country can't see a problem with it.

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£50,000.00 £1,666.67?????

My household income is around that, my rent is less than a third. The calculator is a nonsense.

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For every £3 you earn, £1 is to go to the government, £1 is to go to the landlord, £1 is for you to live on. This is the world they want us to live in. Funnily enough, the governments and landlords who run the country can't see a problem with it.

This is unfortunately the world we are living in, at least anybody <35.

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£200 commuting costs a month don't exactly help but there's nothing much I can do about that beyond moving.

I always try to pay the absolute minimum in rent though - some people like a fly pad, but I don't really care so tend to get the cheapest available. To an extent its a matter of taste I guess, but I'd never rent anything even remotely expensive, just seems a waste of money to me.

Fair enough, although I'd prefer to spend less on commuting and more on a nicer place for net no difference (if that's possible, of course). I suppose I have the advantage of living less than two miles from where I work, so commuting costs are pretty negligable.

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I'm on 22k and I'll be moving into a place for 575 per month, so just under half my take home pay.

It may seem mad, but I really struggled to find anywhere decent for under 525 in the SE.

Most landlords don't bother to maintain the place and most I looked at looked like they hadn't been touched since the 70s.

It won't be too bad though as I will be 10mins from work and so should save around 150per month in commuting.

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Fair enough, although I'd prefer to spend less on commuting and more on a nicer place for net no difference (if that's possible, of course). I suppose I have the advantage of living less than two miles from where I work, so commuting costs are pretty negligable.

I am considering moving closer to work, as ~£2200 ish a year on travel seems extortionate to me.

That said if I did move I'd get a cheap pad and just save/spend even more. :lol:

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Thes figures are simply wrong.

Imagine someone on £50K. Their take home pay after Income Tax, NI and pensions deductions is no more than 66% of their gross pay or around £33K. Paying £1.67K rent a month would be £20K per year. So they will be left with £13K for everything else including food, fuel, bills, saving etc?

No way.

Edit: Ditto at the lower end. £500 pcm = £6K pa. A salary of £15K will have take home of £13K allowing for £7K personal income allowance. So that leaves £7K to live of per year.

The LA needs to join the real world.

Yep, balacks LA, I currently pay half what that would say is affordable for me but would not pay more as my ability to save would take a serious dent. So for me affordable is somewhere around half the value they would suggest. Or do they mean affordable for you landlords desires.

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I am considering moving closer to work, as ~£2200 ish a year on travel seems extortionate to me.

That said if I did move I'd get a cheap pad and just save/spend even more. :lol:

We, me and the better half, are looking to move to a cheaper area, currently in York and with railfare rises my annual work commute comes out at £2150 and expensive housing (because York is such a nice place to live but it isn't any more with all the chavs and beggars) so if I'm having to fork out for rent I'll do it in an as chavvie but cheaper area closer to work. Currently earn just north of £35k and the other half, although not working just now, has a comparable earning potential and £575 in a 2 bed terrace is just not right when it could be any housing estate in the country. Just need her to be a lucky job seeker so we can decide on a central location for both jobs.

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Affordability Calculator

Formula: Your Salary ÷ 2.5 ÷ 12 = Your Monthly Affordable Rent

Don't they know that 2.5 x 12 = 30 ??

How is this scheme going to work if the people running cannot do simple maths? Or do they do it the longer way to use time and create jobs?

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I'm on 22k and I'll be moving into a place for 575 per month, so just under half my take home pay.

It may seem mad, but I really struggled to find anywhere decent for under 525 in the SE.

Most landlords don't bother to maintain the place and most I looked at looked like they hadn't been touched since the 70s.

It won't be too bad though as I will be 10mins from work and so should save around 150per month in commuting.

Good move! ;)

You will have more time too!

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I'm on 22k and I'll be moving into a place for 575 per month, so just under half my take home pay.

It may seem mad, but I really struggled to find anywhere decent for under 525 in the SE.

It's far from linear.

You need to spend £500+ for somewhere habitable even if you earn £20k.

Bit if you earn £100k (5 times as much) you wouldn't need or want to spend even twice that much in rent.

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laugh.gif at those figures.

Are they seriously suggesting that someone earning £30k, who would take home somewhere in the region of £1800 per month, should spend £1000 of that on rent!?

Absoloute madness...

They aren't saying you should pay that. They are saying you should not pay any more than that. £800 per month for everything else is tight but doable, so it seems a reasonable limit.

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For every £3 you earn, £1 is to go to the government, £1 is to go to the landlord, £1 is for you to live on. This is the world they want us to live in. Funnily enough, the governments and landlords who run the country can't see a problem with it.

+1

Renting £1,000pm is low in most areas for those on a median male full time wage.

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It's far from linear.

You need to spend £500+ for somewhere habitable even if you earn £20k.

Bit if you earn £100k (5 times as much) you wouldn't need or want to spend even twice that much in rent.

I strongly suspect it's housing benefit that's done that to the market. A landlord in north London would be a fool to let out a 3 bed to a working couple with a combined wage of £60k as the most they can reasonably afford in rent would be in the region of £1200 per month, and if either of them lose their jobs they will be in trouble. Haringey council will pay £1400 a month to put an unemployed family in the same flat. Total no brainer for the landlord.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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