rent vs income

debrag

How much of your income should go on rent?

nomoneytoday

As much as you wish to spend on a roof over your head?

princeofpounds

zero. if possible!

More seriously, youngish people I know in London typically end up spending about half their net income in rent, maybe even a touch more. Assuming a single wage.

The old rule of thumb used to be more like a third I think, but it's not the reality these days for anyone living in the south east.

You can get it lower for course depending on where you live!

westlondonbuyer

It depends where you live; how many people you live with (or are prepared to live with); the demand for rented properties in your area; whether you're a postcode snob; whether you prioritise your life at home or your social life.

In London it's not unusual to spend half your take-home pay on rent alone, although having been there and done that, it's definitely not a formula for a happy existence.

My husband and I are currently paying a third of our take-home in rent and bills, and at this level we're not worried about bills, can save and can have nice holidays and meals out etc. I manage to pay a good slug into my pension, but have to be frugal about clothes/shoes/nights out. We could save more money by living further from work, or by living somewhere smaller, but have chosen not to do so.

iolanthe07

I believe the rule of thumb is not more than 30% of your gross income for rent. Council Tax would be extra on top of that.

casper_g

Spend as little as you can to get a home you will be able to live in happily. My wife and I spend no more than about 20% of take-home, but at the moment, with no kids, we're very happy with the house we get for that.

Gwhiz

All of it plus an extra £50 for fun

charlie792

Ive heard that estate agents are more likely to accept you if the rent is less than 40% of your income. Our rent is around 25% of our total...

princeofpounds

My wife and I spend no more than about 20% of take-home, but at the moment, with no kids, we're very happy with the house we get for that.

Just for fun I did a quick exercise and decided to see what I could get for it.

Bear in mind that I am a top 5% earner in the UK according to national statistics.

I could, thankfully, rent a 1 bedroom apartment off a main road in Deptford.

Yes kids, studying at school was the key route to success. I have truly arrived

debrag

We are looking at around 40% that is with both of us on min wage full time jobs and living in London

Hammyman

debrag wrote: »

We are looking at around 40% that is with both of us on min wage full time jobs and living in London

That's not too bad. Our mortgage is about 1/4 of our joint net income but we live Oop Norf.