First time buyers in London spend 30% of their wages on rent compared to 16% across UK
According to the Association of Residential Lettings Agents (ARLA) the average first time buyer in London spends £68k on rent before buying a property in a recent survey.
David Cox, managing director of ARLA, said: “The rising cost of rent in this country is a huge issue, and is preventing tenants from being able to save to buy a home.
“Our Cost of Renting report reveals that tenants are already spending a significant proportion of their income on rent, and therefore struggling to save any money.
“However, as house price affordability worsens and interest rates start rising, more pressure will be put on renting with weekly rent likely to rise, so home ownership will remain out of reach for many.
“Rents are becoming alarmingly unaffordable due to the lack of available housing; the North-South divide we’re currently seeing in the UK is a clear illustration of this.
“The London rental market is competitive, with far more prospective tenants looking for properties than actual houses available.
“This is pushing up rents in the capital, which will continue to put pressure on surrounding areas, including the South East, as Londoners relocate to avoid high rent costs.”