Renting in London unaffordable for most families
Renting a two bedroom home in London is unaffordable for families earning less than £52,000, according to new research.
The housing charity Shelter has said that a family would have to take home £3,500 a month to be able to afford to rent from a private landlord in the capital.
The research, part of Shelter’s Homes for London campaign which calls for the next Mayor of London to prioritise housing, also shows that in eight London boroughs – including Hackney and Tower Hamlets – families would need to earn more than £60,000 a year.
With the typical London household income less than £35,000, the charity is warning that growing numbers of families are at crisis point, paying up to half of their income in rent each month.
The research also found that the rate of inflation on private rents in London was 7 per cent in 2011 - almost double the rate of inflation on the average London wage, indicating that family budgets are set to be squeezed even further as rent rises consistently outstrip inflation.
Campbell Robb, Shelter chief executive, said: ‘These findings paint a worrying picture of thousands of families across the capital being stretched to the limit by the high cost of renting, praying they won’t be hit by another rent rise that could tip them over the edge.
‘With so many Londoners locked out of home ownership, more and more families have no other option but to rent, but rents are now so out of touch with wages that some families are spending over half of their income just to keep a roof over their head, leaving little left for food, fuel and other essentials.
‘London’s renters will be looking to the next mayor to fix London’s out-of-control rental market, and give them some stability and predictability with their housing costs.’