Jump to content
House Price Crash Forum
Sign in to follow this  
Northerner

Uk Renters Willing To Pay 40% Of Gross Income On Rent

Recommended Posts

Came across this - don't rent myself, so can't add much ...

· UK renters willing to pay 40% of gross income on rent: According to the Knight Frank UK Residential Tenant Survey, the average response of more than 3,500 people across the UK on how much of their gross income they would be willing to pay out on rent the average response was 40%. This will be well received by companies targeting the Private Rented Sector market, some of whom are underwriting investments based on 50% of after tax or net income being paid as rent. There are now more privately rented dwellings than socially rented homes, with growth in the sector pre dating the housing crash of 2007/08 largely due to increased availability of buy-to-let mortgages, and an inaccessible housing market for younger people due to higher prices.

· Affordability most important criterion by nearly 3x: 65% of respondents cited affordability as the most important criterion, nearly 3x as many as location, the next highest criterion at 23%. The remaining 13% consisted of ‘plenty of space’ (10%) and ‘don’t know’ (3%). However, this changes with income, with 67% of those earning £30,000-£35,000 a year concerned about affordability and only 39% of those earning between £50,000 and £60,000, who are more concerned about location.

· Sub-linear relationship between salary and rents: Reinforcing our pricing sensitivity and concerns about domestic demand for >£1,000 psf flat sales in London, Knight Frank’s survey shows evidence of a ‘rent ceiling’ or sub-linear relationship between salary and rents. 33% of those earning £20-25,000 pa said they would pay a maximum 30-40% of gross income on rent, only 24% of those on £45-50,000 responded similarly.

· Some 42% of Londoners are willing to live in studio accommodation, while 34% would live in a micro flat. 78% said they would like to live no more than 1km from the nearest transport link. Also there seems to be evidence of changing attitudes towards renting, 44% of respondents rent because they don’t have a deposit, but 32% don’t want a mortgage or it suits their lifestyle. (Source: Knight Frank)

http://content.knightfrank.com/research/707/documents/en/2014-2407.pdf

Share this post


Link to post
Share on other sites

FORCED. NOT WILLING.

Exactly, we would be quite willing to buy a good quality mobile home and live in one of the surrounding fields rent free whilst building ourselves a house. All basically illegal under the current planning system setup to protect those who already own the land with planning rights.

Share this post


Link to post
Share on other sites

I'm a graduate, work full time minimum wage, take home around £950 per month.

My rent on a 1 bed studio flat is £340, which is 35% of my gross income. total outgoings around £880, that's without clothes, prescription charges, and any form of maintenance or socialising/holidays/life.

(Rent £340 + Groceries/Toiletries £240, Council Tax £70, Water £35, Gas/Elec £80, Transport Pass £72, TV £12, Laundry £30.)

So I can't be the only one, working too hard, losing touch with their friends and having no life whilst wandering round in rags. It's annoying seeing foreign beggars better dressed hanging around, living in better housing all for free, whilst I'm withering away.

How far are we off society actually collapsing? If riots start with disenfranchised white males, I'll happily join the frontline because I'm sick and tired of this. Something's got to give!

Share this post


Link to post
Share on other sites

I'm a graduate, work full time minimum wage, take home around £950 per month.

My rent on a 1 bed studio flat is £340, which is 35% of my gross income. total outgoings around £880, that's without clothes, prescription charges, and any form of maintenance or socialising/holidays/life.

(Rent £340 + Groceries/Toiletries £240, Council Tax £70, Water £35, Gas/Elec £80, Transport Pass £72, TV £12, Laundry £30.)

So I can't be the only one, working too hard, losing touch with their friends and having no life whilst wandering round in rags. It's annoying seeing foreign beggars better dressed hanging around, living in better housing all for free, whilst I'm withering away.

How far are we off society actually collapsing? If riots start with disenfranchised white males, I'll happily join the frontline because I'm sick and tired of this. Something's got to give!

Indeed, at 20% gross your disposable income would triple to a still fairly modest £210 per month.

Osborne's ruinous housing bubble is open financial warfare on the living standards of diligent working types like yourself. Strange really, people with small-c conservative mindsets usually harp on about the virtues of 'equality of opportunity' while being willfully blind at the policies which are increasingly tailor-made to eradicate them.

Best of luck btw.

Share this post


Link to post
Share on other sites

My rent is c. 49% of my take home pay (albeit also after my pension contribution is deducted). It's a modest 2 bedroomed flat with white goods. I'm looking at downsizing to a 1 bedder but there isn't a lot out there that takes my fancy for a lower rental price.

Share this post


Link to post
Share on other sites

Wrighty - Few things really. Get on a water meter. Look at your food bill seems high. Delete the TV payment (screw em). Take some of it back that way.

Share this post


Link to post
Share on other sites

Giving up renting and will always try a house share instead or bed sit or something.

Current ex-landlord trying to screw me over so given him 7 days to refund the full deposit or we're going to court.

Tired of chasing for my money

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   211 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.