How Much Rent To Pay...

[Slappertravel]

What's a reasonable amount of your take-home salary to be shelling out in rent?

Currently trying to balance renting a 1-bed in N. London, with only 1 person's salary. 1 beds seem not to be much cheaper than 2 beds as guess landlords assume 1 beds will go to a couple with 2 incomes.

Now we're a couple with 1 income which is £2.4k per month. And we don't want to live in a skanky bedsit above a chicken shop. (Not that we expect marble bathrooms and luxury kitchens either - just somewhere clean, decent and in a safe area)

Is £800 pcm too much? Or would you think that's perfectly reasonable? What are other people's experiences?

[MrShed]

I have discussed this with people elsewhere, the following link may help somewhat:

http://www.landlordzone.co.uk/forums/showthread.php?t=1225

Generally, it is not considered a good idea to rent without earning at least 2.5 times the rent. So, you should not really consider it if you are earning double the amount of rent, only slightly more. With your figures, you are well above this general guideline, and I personally would think it to be OK. However, you really need to look at your own personal circumstances - like how much you actually spend on living, if you have any debts, how much your bills are you are shelling out for etc. The 2.5 figure is a good guideline for landlords to accept tenants. From a tenants point of view, each case really has to be done on an individual basis.

Hope this helps.

[MarkyB]

so a 625 rent

with 2650 income would be ok... plus I have self employed status with another firm for consultancy?

did have a CC issue about four years ago... would this be a problem? on the credit check?

[Live_in_hope]

I have discussed this with people elsewhere, the following link may help somewhat:

http://www.landlordzone.co.uk/forums/showthread.php?t=1225

Generally, it is not considered a good idea to rent without earning at least 2.5 times the rent. So, you should not really consider it if you are earning double the amount of rent, only slightly more. With your figures, you are well above this general guideline, and I personally would think it to be OK. However, you really need to look at your own personal circumstances - like how much you actually spend on living, if you have any debts, how much your bills are you are shelling out for etc. The 2.5 figure is a good guideline for landlords to accept tenants. From a tenants point of view, each case really has to be done on an individual basis.

Hope this helps.

Thats all well & good mr fred in the shed, though we all live in the real world & rents asked tend to be unfair, clearly pushed by the BTL brigade which have been buying up affordable housing for the last 5 years (1999 50% FTBs today sub 10%). I dislike these folk more than EAs

For the general population (of wanabee ftbrs) to get rents that fit this criteria they would need to move to move to some remote scottish isle

Edited January 15, 2006 by Live_in_hope

[MrShed]

Live in hope, what rubbish. These figures ARE based upon the real world. You cannot live spending half of your earnings on rent, or more than half. And I am not sure what rental properties you are looking at, but in my area this general rule of thumb means nearly all "beginner" rental properties, including the nicer areas, are available to anyone earning over 20k per year. I have given a generally accepted, justifyable and quantifiable answer. You have come back with utter emotional rubbish. Reply with some useful information and I will take you seriously.

Edited January 15, 2006 by MrShed

[Guest magnoliawalls]

For the general population (of wanabee ftbrs) to get rents that fit this criteria they would need to move to move to some remote scottish isle

No, they just can't afford to live alone. I would expect that anyone earning the minimum wage or more would be able to afford to rent a room in a shared house or lodgings.

I have discussed this with people elsewhere, the following link may help somewhat:

http://www.landlordzone.co.uk/forums/showthread.php?t=1225

Generally, it is not considered a good idea to rent without earning at least 2.5 times the rent. So, you should not really consider it if you are earning double the amount of rent, only slightly more. With your figures, you are well above this general guideline, and I personally would think it to be OK. However, you really need to look at your own personal circumstances - like how much you actually spend on living, if you have any debts, how much your bills are you are shelling out for etc. The 2.5 figure is a good guideline for landlords to accept tenants. From a tenants point of view, each case really has to be done on an individual basis.

Hope this helps.

Thanks for this link and perspective.

[Live_in_hope]

Live in hope, what rubbish. These figures ARE based upon the real world. You cannot live spending half of your earnings on rent, or more than half. And I am not sure what rental properties you are looking at, but in my area this general rule of thumb means nearly all "beginner" rental properties, including the nicer areas, are available to anyone earning over 20k per year. I have given a generally accepted, justifyable and quantifiable answer. You have come back with utter emotional rubbish. Reply with some useful information and I will take you seriously.

So what about those young families on less than 20K a year where do they live, overcrowded with their parents, wait 10 years for a crummy council bedsit ???

I agree your comments about the real world - do you classify house prices today as the real world ????

Just a question are you a BTLr ?

Edited January 15, 2006 by Live_in_hope

[MrShed]

You are welcome Magnolia, feel free to post again if you have further questions.

Live in hope, my previous reply may not have gotten my point across, so I shall clarifiy. I don't, or at least try not to, give any of the information I give here as fact, merely my opinion - albeit an opinion based upon my personal knowledge of the sector. There is nothing wrong with contradiction and debate on forums - indeed that is what they are there for, and the coming together of several different views can lead to great assistance given. However, there is an inherent problem I have noticed on these forums in particular in my short time here, and that is that there is an unbelievably high amount of posters who believe they know 100% correct on everything, and will not take on board other points of view. The worse thing is that these posters, on this board, really seem to know extremely little of what they are talking about.

As I say, there is nothing wrong with debate. But take on board other peoples points of view, and accept that there is at least a slim chance that you may not be totally correct with yours.

So what about those young families on less than 20K a year where do they live, overcrowded with their parents, wait 10 years for a crummy council bedsit ???

I agree your comments about the real world - do you classify house prices today as the real world ????

Just a question are you a BTLr ?

And why shouldnt they live like that? You seem to go on the assumption that everyone should have some kind of inherent right to rent. Why? Some people simply do not earn enough money, and there will ALWAYS be people who do not earn enough to rent, regardless of the BTL/mortgage/rental/pork markets. But, the point is, even now, the vast majority of full time workers, apart from a few key low-paid industries(such as hospitality and retail), can afford to rent.

I do not understand your comment about house prices today....please clarify. In the literal sense, house prices today, as they are today, are in fact the definition of the real world. Blaming house price rises purely on the strong BTL market is very shortsighted, and not looking at all of the facts. It is, undoubtedly, a factor. But so is the simple fact that for the past 8 years we have had a very strong economy, especially when compared to the other big economies in the world. Combine this with the steady and low interest rates which the BoE has done an excellent job with, and the confidence created mean house prices will rise, as there is increased demand, yes from BTL, but mainly from the residents themselves.

The question as to whether I am a BTLr is neither here nor there, and I do not intend to answer it. All of my posts are based upon my knowledge of the sector, and I am not biased towards tenants, landlords, or letting agents, merely towards the law.

[Live_in_hope]

You are welcome Magnolia, feel free to post again if you have further questions.

Live in hope, my previous reply may not have gotten my point across, so I shall clarifiy. I don't, or at least try not to, give any of the information I give here as fact, merely my opinion - albeit an opinion based upon my personal knowledge of the sector. There is nothing wrong with contradiction and debate on forums - indeed that is what they are there for, and the coming together of several different views can lead to great assistance given. However, there is an inherent problem I have noticed on these forums in particular in my short time here, and that is that there is an unbelievably high amount of posters who believe they know 100% correct on everything, and will not take on board other points of view. The worse thing is that these posters, on this board, really seem to know extremely little of what they are talking about.

As I say, there is nothing wrong with debate. But take on board other peoples points of view, and accept that there is at least a slim chance that you may not be totally correct with yours.

Fred what I've said is what we've all seen in the SE rising rents their is a large portion of young families who are clearly paying to much, in oodles of debt but what choice do they have ?

What I've noticed on these forums is the number of old farts who think they know all.

So who is buying the houses then if sub 10% are FTB the wizard of oz ?

/////////////

The question as to whether I am a BTLr is neither here nor there, and I do not intend to answer it. All of my posts are based upon my knowledge of the sector, and I am not biased towards tenants, landlords, or letting agents, merely towards the law

////////////

So fred are you an EA or a BTLr ? thanks for the answer above so its BTLr

Edited January 15, 2006 by Live_in_hope

[MrShed]

Again live in hope, I urge you to actually post a valid opinion or valid information.

I cannot talk about the South East, as I do not live there. But, I still maintain my point that the vast majority of full time workers can afford to rent. And if they can't, they shouldn't have families! Everyone has a choice in this life I'm afraid, if people make the wrong choices then they have no-one to blame but themselves.

"Old fart" - ok then I'm 22 how much of an old fart does that make me????

And again, I shall not answer the BTLr question. If I am a BTLr I would have no shame in saying so, so you are way off the mark in saying just because I won't answer I am. I would simply rather my answers were taken as face value, based upon common sense and the law, rather than being taken as what I do.

[Live_in_hope]

Again live in hope, I urge you to actually post a valid opinion or valid information.

I cannot talk about the South East, as I do not live there. But, I still maintain my point that the vast majority of full time workers can afford to rent. And if they can't, they shouldn't have families! Everyone has a choice in this life I'm afraid, if people make the wrong choices then they have no-one to blame but themselves.

"Old fart" - ok then I'm 22 how much of an old fart does that make me????

And again, I shall not answer the BTLr question. If I am a BTLr I would have no shame in saying so, so you are way off the mark in saying just because I won't answer I am. I would simply rather my answers were taken as face value, based upon common sense and the law, rather than being taken as what I do.

I'm 35 so at least now I know i speaking to one with limited life experience you remind me of a shire horse complete with blinkers offering limited vision

Give yourself another ten years of 'life' & then at that time your ramblings may have something to base themselves upon

For example you've stated that 800 is too much, this is typical for the SE for a 3 bed, london is worse.

Plus housing its not really 'about common sense & law is it' hence the mess it's in today & the appearance of the forum that we post in today

Edited January 15, 2006 by Live_in_hope

[MrShed]

Actually I stated that 800 was fine. And please, do not assume that I know nothing about this market due to my age. This would be all well and good had I not added anything to the discussion, but as far as I can see, I have given a good and generally acceptable "real world" answer, whilst you have not even attempted to respond to any of my points or indeed the original question.

And as I have said I know nothing of the South East or London. But remember that London, as seems to be assumed by many, is not the central focus around which the world revolves.

By 35 I would have thought you would know how to articulate a response, but apparently not. This is why I do not tell people my age or my personal involvment in the housing industry, as certain discriminatory bigots assume you know nothing, or are biased.

Edited January 15, 2006 by MrShed

[Live_in_hope]

Actually I stated that 800 was fine. And please, do not assume that I know nothing about this market due to my age. This would be all well and good had I not added anything to the discussion, but as far as I can see, I have given a good and generally acceptable "real world" answer, whilst you have not even attempted to respond to any of my points or indeed the original question.

And as I have said I know nothing of the South East or London. But remember that London, as seems to be assumed by many, is not the central focus around which the world revolves.

By 35 I would have thought you would know how to articulate a response, but apparently not. This is why I do not tell people my age or my personal involvment in the housing industry, as certain discriminatory bigots assume you know nothing, or are biased.

So who is 22 ?

[RobertPaulson]

So who is 22 ?

for gods sake, shut up!! Or are you going to tell him your dad is bigger than his in a moment...

[Live_in_hope]

for gods sake, shut up!! Or are you going to tell him your dad is bigger than his in a moment...

Are you freds buddy jumping up to defend or is this really fred with a different alias ???

[MrShed]

Seriously, live in hope. Go away, learn something(anything would be a start) about the housing and rental market, stop assuming age means knowledge, and stop flaming people. You really are going beyond a joke now. I have tried to stick to the issue throughout, which you apparently cannot do. Please go away and annoy some other poor buggers on some other forum.

[Slappertravel]

Well, thanks for all that guys. I suppose one view on my original question isn't too bad. Back to the flats-for-rent websites then...

[iamconfusedagain]

Hi MrShed

You are spot on about us on this forum we are all 100% right all the time. I love it, A thread without a fight, well its just boring aint it?

Seriously though, as someone who is looking into renting your advice is welcome, even if you are just a kid

Personally as a single guy who does not want to get into debt, I dont want to spend more than 25% of my take home pay on rent, and less if I can get away with it. But I am also trying to spend less than £10 on food a week so I guess is depends on perspective. (most think I have lost mine)

The problem seems to me that even if I wanted to pay through the nose for a homely environment it is not very easy in the UK. You still get a short contract and people wanting to inspect your home every five minutes.

My experience with renting has been the cheaper the better. If the house is bad enough when you move in you dont lose your deposit even when your drunk make throws up on the sofa and the mould in the bathroom evolves into a sentient being. Not much good if you have a family thogh I admit

[beerhunter]

What's a reasonable amount of your take-home salary to be shelling out in rent?

Maybe some help..

Currently I pay just under 20% of my monthly income before tax on rent and it's painless.

Yet in the past I have paid (due to the situation) 45% of my monthly income before tax on rent... and that hurt!

Based on experience, my rule of thumb is to pay from gross income about;

- 25% in taxes

- 25% in rent and need to survive bills

- 25% to live on and pay the other bills

- 25% saved for a deposit/house

[AteMoose]

http://www.london-flat-rental.co.uk/cgi-bi...=0&sc=y&l=0&s=1