Sunday, November 6, 2011

Data

Changes to affordable housing in England mapped

Affordable housing will be up to 80% of average rents for the area. What does this mean for your area? Here's what the effect of 80% of average rents looks like for different housing types across the country. The map shows annual income of a household (in pounds) needed to pay rent at 80% of current prices and the grey areas are where no information is available.

Posted by dill @ 01:30 PM (3628 views)
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2 thoughts on “Data

  • “Salary needed to pay 80% of normal rent”

    There are a lot of unanswered questions. Firstly, the government’s guidelines are 80% of the market rent of the particular property, not of the local average. If there’s a shabby council estate in an otherwise very leafy area (e.g. Kensington & Chelsea), then the market rent of those shabby flats will be considerably lower.

    Secondly, in the worst-case scenario (Kensington & Chelsea) they claim you’d need to earn £59,428 per annum in order to afford 80% of the rent of an average one-bedroom flat in the area. That gross salary translates into £41,077 net of income tax and NI, or £790 per week. Looking on RightMove, the median rent for a one-bedroom property is £500 per week. (Bear in mind that RightMove lists more high-quality places; you’ll find cheaper rentals on Gumtree and Loot.) 80% of that is £400 per week. So you’d have £390 a week left over to cover utility bills, food, transport, etc. – that’s a considerable sum of money!

    I suspect the authors have used a metric such as “no more than 50% of your salary should be spent on rent”. That sounds fine in theory, but in practice what matters more is how much is left over after rent in absolute £pounds – not how much as a percentage. Somebody on minimum wage (roughly £200pw after tax) spending 50% of their salary on rent would only have £100pw left over to cover bills, food, etc. That’s less than the basic state pension (and unlike a pensioner, this person has to pay for bus fares to work each day).

    Let’s turn the figures around. According to the left-leaning Joseph Rowntree Foundation, a single person needs to earn £184 after tax excluding housing costs in order to “participate in society” [source]. The 2nd decile of properties in K&C cost around £365 per week [Rightmove]; 80% of that is £292. So they need a total income of £476 net, or £33,000 gross per annum [income tax calculator]. That’s still a high salary, but it’s a lot lower than the Guardian’s figure of £59,428. And let’s not forget we’re talking about Kensington & Chelsea, the most expensive borough in the most expensive city in Britain.

    That said, it’s unavoidable that inner London council housing will become more exclusive. It’s just not quite as bad as the Guardian suggests.

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  • Drewster, hit the nail on the head (again).

    Standard rip-off Britain. 80% of rents, not measured against average income. And then, on the other side of the coin, I read somewhere that benefits are going to go up 5.2% because they are linked to inflation. Funny that all the Tory scumbags now say that’s not good and want to stop it. And a while ago, the Labour [email protected] refused to decrease student loans when inflation turned negative.

    Bunch of greedy gits, the lot of them. The problem, of course, is the people and less the politicians, who like to peddle this sh1t. My Mrs is as bad as the rest — ‘lazy scroungers,’ and ‘bloody immigrants’ are two phrases likely to get her blood to boil, but with no real depth of thought.

    I think MW had it right on another thread — people only want to sit in their big fat @rses (or is that me!) and count their income from other people’s rent. We seem to live in a society where hard work is not wanted, just a means of getting money given easily, either via an Internet scam, housing scam, or being a celeb on the telly.

    [Sorry, in a bad mood — just got an Android phone, and I’ve discovered I can do sweet FA with it, other than what Vodafone, Google and HTC want of course, which in no way maps to what I want to do with it. Bar stewards!]

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