Jump to content
House Price Crash Forum

What Percentage Of Your Income Goes On Housing?


Recommended Posts

  • Replies 82
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

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.

agree, found this guardian article based on research in 2013-14:

Tenants in England spend half their pay on rent

London tenants pay 72% of earnings on rent, according to latest figures from the English Housing Survey

Rents in England are almost half of tenants’ average take-home pay, according to an official report on the state of the country’s housing. Figures in the latest English Housing Survey, based on research in 2013-14, show that tenants paid an average of 47% of their net income in rent, while those who had taken out a mortgage faced repayments equal to 23% of their earnings after tax. The report, which is the most comprehensive snapshot of England’s housing stock and how people are living in it, also showed that once housing benefit is stripped out of income, average rents are now more than half of average gross pay.

Ratio of housing costs, including and excluding housing benefit. Illustration: English Housing Survey

785292fe-47f4-434d-892c-01b43153030e-bes

article here...

Link to post
Share on other sites

We mostly did 40% joint income (started 2005 with the attitude to overpay £500+). Loan to original value now 20%. Stumbled upon a small bit of money soon to become 14%.

Were taking a break. No more overpaying, wife on 3 days a week. I gave up working (got sick of tight deadlines created by bosses as they bugger off home or even hours before I go on holiday!). Scouting for a nice 2-3 days a week gig. Doing some sideline stuff £400 a month for kicks (no kids involved).

The motivation to work hard has gone (used to do 48-52 hours norm even the odd 100). Not spending 100k for a bigger place. Just going to learn new skills, spend time with family, go dancing, homebrew, and loaf about if there is any time left.

Link to post
Share on other sites

My experience of London is that it is a much greater sum than 26%. I think these numbers might be being heavily skewed.

That'll be an average. Some people own their own places.

As usual, I'm awkward. It depends on what you count of my income. If you just count monthly salary (the government's "living wage") the rent is over 60% - though that gives me the whole of a decent 3-bed house in contrast to the slum HMO room the same proportion of my salary got me as a young grad in the 1980s. Fortunately my investment income (which I've been building for between 7 and 8 years) now more than covers the rent.

Link to post
Share on other sites

14% - if you are talking council tax (which surely counts as a housing cost even if you have no mortgage/rent - although some on here think if you have no mortgage to pay you are rich, rich, rich)

Hmmmm, my council tax is around 15% of what I pay in rent. Can't wait to get out of the UK forever (3 months and counting).

Link to post
Share on other sites

Housing situation : lodger. Excellent family home, East anglia.

Work : part time.

Rent Cost as % of actual available take home: 35%

Rent cost as % of take home if wasn't salary sac' most into pension : 17%

Rent cost as % if was a full time worker : 12% (included as a comparison against typical person).

If i included investment income my rent is covered entirely by that + more. I'm very, very lucky indeed. Renting is definitely not 'dead money' if you can make the sums work in your favour.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 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%



×
×
  • Create New...

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.