tyres Posted April 27, 2016 Share Posted April 27, 2016 (edited) From the conversation on this thread That's the assumption in the latest figures from think tank Resolution Foundation, which show that lower- and middle-income households are spending 26% of their salaries on housing, compared to 18% back in 1995. In London, households spend 28% of their income on housing. The think tank said this is the equivalent to adding 10 percentage points onto income tax. ....26%?! And the rest! If people were really only spending 26% of their income on rent, then they're laughing - will be able to put away 25%+ in savings each month. I think it's more like 45% or 50% for a lot of renters / mega-mortgagers. Or are they doing some crude "average" with the stats i.e. including mortgage free and children (lol)? I was wondering what percentage of your income (take home pay) goes towards rent / mortgage?For me its close to 50%, living in Cambridge :/ Edited April 27, 2016 by tyres Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted April 27, 2016 Share Posted April 27, 2016 No Poll? 45%. Quote Link to comment Share on other sites More sharing options...
mspL4 Posted April 27, 2016 Share Posted April 27, 2016 0% if you mean rent or mortgage, (owned outright). 10% if you mean "Council" tax/Gas/Leccy/Water/Food. Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted April 27, 2016 Share Posted April 27, 2016 Circa 45% Quote Link to comment Share on other sites More sharing options...
Guest BillyNI Posted April 27, 2016 Share Posted April 27, 2016 Joint, 20% Trying hard not to live above our means. Quote Link to comment Share on other sites More sharing options...
Craig_ Posted April 27, 2016 Share Posted April 27, 2016 Is that salary (pre-tax) or take home pay? Quote Link to comment Share on other sites More sharing options...
Guest BillyNI Posted April 27, 2016 Share Posted April 27, 2016 Is that salary (pre-tax) or take home pay? I was assuming we are taking take home. Quote Link to comment Share on other sites More sharing options...
nome Posted April 27, 2016 Share Posted April 27, 2016 That rise from 18% in 1995 to 26% today seems to be a very conservative figure when you consider whats happened to earnings v house prices in that time period. Quote Link to comment Share on other sites More sharing options...
Guest BillyNI Posted April 27, 2016 Share Posted April 27, 2016 That rise from 18% in 1995 to 26% today seems to be a very conservative figure when you consider whats happened to earnings v house prices in that time period. My experience of London is that it is a much greater sum than 26%. I think these numbers might be being heavily skewed. Quote Link to comment Share on other sites More sharing options...
tyres Posted April 27, 2016 Author Share Posted April 27, 2016 I was assuming we are taking take home. take home pay Quote Link to comment Share on other sites More sharing options...
jamie77 Posted April 27, 2016 Share Posted April 27, 2016 24% for us on our joint mortgage For our two single tenants in 1-bed flats in Cambridge it's 36% and 29% Quote Link to comment Share on other sites More sharing options...
Guest Posted April 27, 2016 Share Posted April 27, 2016 31% of take home is spent on rent Quote Link to comment Share on other sites More sharing options...
Riedquat Posted April 27, 2016 Share Posted April 27, 2016 30% on mortgage. Quote Link to comment Share on other sites More sharing options...
Lifes a game Posted April 27, 2016 Share Posted April 27, 2016 I'm very sceptical of the article because I hate it when the media uses a think tank to justify their story as it appears to give some legitimacy to their mindless dribble. So Resolution foundation has a slogan "Analysis and action on living standards" you can tell RF had their opinion a long time ago and the data they use will support that view. RF is based in Westminster so I wouldn't be surprised if this was a lobbying campaign and they sponsored that media outlet to write about their agenda (maybe I go too far with that) As for my opinion, I suspect its more than 25% too. Quote Link to comment Share on other sites More sharing options...
BoredByTorque Posted April 27, 2016 Share Posted April 27, 2016 18% joint, London mortgage. I'm pretty risk averse so went for the smaller house that we all fit into rather than the swishy big one that would probably cost the other 82% to heat ☺ Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 27, 2016 Share Posted April 27, 2016 10% of joint net take home on repayment mortgage Quote Link to comment Share on other sites More sharing options...
sisyphal Posted April 27, 2016 Share Posted April 27, 2016 20% That figure doesn't mean much by itself though. So many other variables: mortgage term, single/dual income, interest only/repayment etc. I've overpaid, and been at a higher percentage in the past and will likely do so in the future (once I stop having to pay £500 childcare a month). Quote Link to comment Share on other sites More sharing options...
CentrinoDuo Posted April 27, 2016 Share Posted April 27, 2016 15% joint take home. London mortgage. 18.5% if it's just me. Probably less since I round down our joint take home buy a few hundreds. Mrs. varies her income on monthly basis depending on her rota. Quote Link to comment Share on other sites More sharing options...
scb Posted April 27, 2016 Share Posted April 27, 2016 Years of reading HPC and I've felt like someone who wastes money compared to some on here but finally a thread where I can proudly proclaim that I "only" spend 15% of my take home pay on rent every month. Quote Link to comment Share on other sites More sharing options...
richc Posted April 27, 2016 Share Posted April 27, 2016 less than 10% on rent Quote Link to comment Share on other sites More sharing options...
winkie Posted April 27, 2016 Share Posted April 27, 2016 (edited) SVR 1995 was 8%. Average real house price 1995 ~£90k. Average wage 1995 £17,470 gross. Can someone work that out against today? Other costs CT, insurances and repair and decoration...standing charges for utilities. Edited April 27, 2016 by winkie Quote Link to comment Share on other sites More sharing options...
bristolhunter Posted April 27, 2016 Share Posted April 27, 2016 Just on rent, 30% of joint take-home. Rises to about 40% if you're including council tax & utilities. Quote Link to comment Share on other sites More sharing options...
CunningPlan Posted April 27, 2016 Share Posted April 27, 2016 This is a bit meaningless without location. The very lowest priced 3 bed box within a sensible distance of me is £1,300 pcm - i.e £15,600 per year. add in council tax and you are up to over £17k p.a That requires the following salary: 10% of wages £300k 20% of wages £140k 30% of wages £85k 40% of wages £60k 50% of wages £46k I can't see many 30 year olds round here earning £85k. The whole place is screwed. Quote Link to comment Share on other sites More sharing options...
BearlyBegun Posted April 27, 2016 Share Posted April 27, 2016 29% London SW, shared rental house (% is my share of rent) Quote Link to comment Share on other sites More sharing options...
ccc Posted April 27, 2016 Share Posted April 27, 2016 14% One bed flat by myself Edinburgh But that number is only so low because I am fortunate to earn a lot. If I was the 'average' Edinburgh earner you would be looking at more like 30-35%. And for context - I spend more than 14% on booze/going out per month. Quote Link to comment Share on other sites More sharing options...
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