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fru-gal

How Are People Affording London Rents?

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Just looked at rents in my local area (Finchley) and for small 2 bed flats, rents are typically £300-£350 plus per week. I know a lot of people are on housing benefit but even that would require a big top up to meet the rent. Seriously who are paying these crazy rents and how are they affording it? In nearby Muswell Hill it's even crazier, 3 bedroom flats for £500+ per week. Who has that sort of money and that doesn't even include any bills!?

Edited by fru-gal

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We rent a 3 bed semi near Southgate for 1700 and it's crippling us. Moving out when the contracts up. 2000 per month gets a niceish house round my way. Insane.

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Must be housing benefits. Govt terrified of crashing the housing market is reducing them very very slowly indeed

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No wonder CPI inflation is 0.0% and falling fast - "money's spent on the goddamn rent". The number of renters is growing, and also opting out of much of the wider economy by default. A loss to all the UK businesses that don't make money from providing a roof over people's heads.

Edited by canbuywontbuy

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My wife had a flat in clapham, all the other flats were either old sent ccontrolled so they said peanuts, city bankers or celebrities or 6 to a 2 bed flat, like the one above her. She was so glad to fined some mug to take it off her, asking prices up 50 % since then, selling prices up 40 and she sold at 2007 bubble prices. Mental, bubbles do what bubbles do.

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Ps, she'd not have been able afford to buy the flat when she sold never mind now. Crazy. It's shameful what the home owning tories who promised to fix Gordon Brown's mess has gone and made it much worse.

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couldn't do it without the girlfriend having an income but we spend 1200 out of 5400 on rent each month. No travel expenses thanks to walking and cycling other than ad-hoc trips into town to socialise.

The Key difference is that we chose to live further out in a modest location in zone 3 that allows us to save loads too.

Zero difference between walking to the local restaurants and walking to a poncy Shoreditch cafe selling porridge for six quid a bowl.

Were the lucky ones that happen to be able to walk to work. Dread to think how others do it especially with kids.

Personally I get the impression that salary statistics are totally unrealistic with a lot more than you'd expect operating through ltd companies.

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I been thinking for ages, that for house prices to come down we would first have to see falling rents (or at least increasing IR's, and falling rental costs when compared to mortgages, the balance between rent and mortgage costs is way out of kilter). No-one I know has had a significant increase in income over the past few years, a couple even having nominal cuts after 2008! Still rents in my areas have been rising relentlessly. I'm in zone 3 and the flat next door to mine has just come up for rent for £1400 a month. I currently pay £1100, what will the landlord want next year?

I have looked at rents further out but they also seem to be increasing considerably as everyone else has the same idea, so much so that the costs and hassle of moving don't compute while my LL keeps my current rent level a couple of 100 pounds below the market level. On the plus side my location is great for work and I have 0 travel expenses and minimal travel time.

I don't know how people are keeping up with these rent levels, I suppose it really is a simple case of supply and demand. Even with all the government and media encouragement to buy a home and the increasing disproportional cost of renting compared to mortgage repayments (something I think cannot last but what the hell do I know! I've been wrong for the past 6 years)! There are still too many people chasing too few rental homes! Considering people that rent use housing in a far more efficient way than homebuyers, the numbers really don't make sense (even when considering the artificially high level of Housing Benefit).

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couldn't do it without the girlfriend having an income but we spend 1200 out of 5400 on rent each month. No travel expenses thanks to walking and cycling other than ad-hoc trips into town to socialise.

The Key difference is that we chose to live further out in a modest location in zone 3 that allows us to save loads too.

Zero difference between walking to the local restaurants and walking to a poncy Shoreditch cafe selling porridge for six quid a bowl.

Were the lucky ones that happen to be able to walk to work. Dread to think how others do it especially with kids.

Thats where we are now, working people have been priced out of having kids so it only leaves it to immigrants and fulltime benefits scroungers to make up the numbers.

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People in London are very rich, or improvise, or escape.

I don't know where the lower end of improvisation moved when they dispersed the down-and-outs who used to sleep under the railways at Embankment. I expect the mid-range are in HMOs of various kinds from the shoddy through to the decent.

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I'm improvising.

450 monday-friday lodgings in zone 2 with parking

750 detatched 4 bed house 75 miles away

=1200 a month

Drive down Sunday evening or 5am Monday. Go home on Thursday or Friday night, depending whether I'm needed in the office on Friday.

In an ideal world I'd pick the house up and drop it near a Jubilee Line stop, but that would double the total rental cost and then some.

Edited by disenfranchised

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disenfranchised, you live in Northampton, don't you? I did a quick check on what train season tickets would cost from Northampton to London Euston and found this :-

http://www.londonmidland.com/tickets-and-fares/tickets-and-fares/season-tickets/

Example saving: Northampton to London Euston (inclusive of all Travelcard zones) A weekly season ticket is £154.50 and a monthly season ticket is £593.30. Based on a four-week month, this can save you £24.70 per month.

Extortionate!! If you lived in Japan by the way, it would cost you £0.00 to travel to work (the company pays your fare). £600 quid a month just to put up with a crappy train journey is unacceptable.

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No wonder CPI inflation is 0.0% and falling fast - "money's spent on the goddamn rent". The number of renters is growing, and also opting out of much of the wider economy by default. A loss to all the UK businesses that don't make money from providing a roof over people's heads.

Lol - yes houses inflating at 10% (and the rest in London) but CPI at 0%. Whats the point of CPI ?

People aren't really coping. Classic anecdotal evidence runs like this:

"I'm currently living in Walthamstow at the moment but looking to move.."

translatation: "as an aspiring middle-class I'm ashamed I'm not living in Islington/Clapham et al and am not aware that actually most 'normal' people are quietly suffering, I moved, I'm hoping temporarily, to sort out my crippled finances so in the meantime I need to make excuses as if everybody else is OK..."

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disenfranchised, you live in Northampton, don't you? I did a quick check on what train season tickets would cost from Northampton to London Euston and found this :-

http://www.londonmidland.com/tickets-and-fares/tickets-and-fares/season-tickets/

Extortionate!! If you lived in Japan by the way, it would cost you £0.00 to travel to work (the company pays your fare). £600 quid a month just to put up with a crappy train journey is unacceptable.

Some employers do pay your fare/housing costs if you live in London, it shows in the pay packet, except it is not yours to spend you are forced to pass it on to a third party....otherwise why would very many live there, for the scenery, night-life, space, fresh air, time, quality of life? ;)

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disenfranchised, you live in Northampton, don't you? I did a quick check on what train season tickets would cost from Northampton to London Euston and found this :-

http://www.londonmidland.com/tickets-and-fares/tickets-and-fares/season-tickets/

Extortionate!! If you lived in Japan by the way, it would cost you £0.00 to travel to work (the company pays your fare). £600 quid a month just to put up with a crappy train journey is unacceptable.

Some employers do pay your fare/housing costs if you live in London, it shows in the pay packet, except it is not yours to spend you are forced to pass it on to a third party....otherwise why would very many live there, for the scenery, night-life, space, fresh air, time, quality of life? ;)

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disenfranchised, you live in Northampton, don't you? I did a quick check on what train season tickets would cost from Northampton to London Euston and found this :-

http://www.londonmidland.com/tickets-and-fares/tickets-and-fares/season-tickets/

Extortionate!! If you lived in Japan by the way, it would cost you £0.00 to travel to work (the company pays your fare). £600 quid a month just to put up with a crappy train journey is unacceptable.

Some employers do pay your fare/housing costs if you live in London, it shows in the pay packet, except it is not yours to spend you are forced to pass it on to a third party....otherwise why would very many live there, for the scenery, night-life, space, fresh air, time, quality of life? ;)

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I'm improvising.

450 monday-friday lodgings in zone 2 with parking

750 detatched 4 bed house 75 miles away

=1200 a month

Drive down Sunday evening or 5am Monday. Go home on Thursday or Friday night, depending whether I'm needed in the office on Friday.

In an ideal world I'd pick the house up and drop it near a Jubilee Line stop, but that would double the total rental cost and then some.

Interesting. I am considering the same. Only the fact I have 2 young children puts me off. How do you like your arrangement? Do you have family in Northampton? I assume you house share in London.

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I been thinking for ages, that for house prices to come down we would first have to see falling rents (or at least increasing IR's, and falling rental costs when compared to mortgages, the balance between rent and mortgage costs is way out of kilter). No-one I know has had a significant increase in income over the past few years, a couple even having nominal cuts after 2008! Still rents in my areas have been rising relentlessly. I'm in zone 3 and the flat next door to mine has just come up for rent for £1400 a month. I currently pay £1100, what will the landlord want next year?

I have looked at rents further out but they also seem to be increasing considerably as everyone else has the same idea, so much so that the costs and hassle of moving don't compute while my LL keeps my current rent level a couple of 100 pounds below the market level. On the plus side my location is great for work and I have 0 travel expenses and minimal travel time.

I don't know how people are keeping up with these rent levels, I suppose it really is a simple case of supply and demand. Even with all the government and media encouragement to buy a home and the increasing disproportional cost of renting compared to mortgage repayments (something I think cannot last but what the hell do I know! I've been wrong for the past 6 years)! There are still too many people chasing too few rental homes! Considering people that rent use housing in a far more efficient way than homebuyers, the numbers really don't make sense (even when considering the artificially high level of Housing Benefit).

BTLs create rental demand for property they buy by simply outbidding first time buyers. They don't create oversupply of rental properties.

Only increase in number of properties being built, more efficient usage of existing properties (e.g. less cases than one person occupy a 5-bed property) or decrease of demand could lower rental prices.

State should

1) introduce tax on land hoarders, relax building law, release land its own

2) introduce tax which would penalise inefficient property usage (bedroom tax, mansion tax etc)

3) reduce immigration, they could close border for non-EU immigrants now which would reduce immigration at least by half

Government is not doing this because this would hurt different interest groups (property/land owners, construction industry, grey voters, 1%, business) and those people are more important than poor renters.

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disenfranchised, you live in Northampton, don't you? I did a quick check on what train season tickets would cost from Northampton to London Euston and found this :-

http://www.londonmidland.com/tickets-and-fares/tickets-and-fares/season-tickets/

Extortionate!! If you lived in Japan by the way, it would cost you £0.00 to travel to work (the company pays your fare). £600 quid a month just to put up with a crappy train journey is unacceptable.

Plus parking....and it's a poor slow branch line services e.

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