Proportion Of Income Spent Renting

Shreddies

Hey guys,

Just wondering what people think is a reasonable proportion of their income to spend on renting? Currently 22% of my monthly income goes on rent (including bills) which is fairly low.

I'm looking to upgrade but the next step up drags me towards around 40% of my income - do people think that's excessive & it'll impact my disposable too much?

It's a toughie currently loving the freedom of all the spare cash but where I am now is really not a great place.

Cheers

mluton

Both myself and other half pay 50% of our wages to cover renting and living costs.

PasturesNew

If I rented a cheap/nasty 1-bed flat in my region, with the other occupants of the building being dole scum, layabouts and druggies, I'd be paying about 50%

Shreddies

PasturesNew wrote: »

If I rented a cheap/nasty 1-bed flat in my region, with the other occupants of the building being dole scum, layabouts and druggies, I'd be paying about 50%

I'm currently one step up on dole scum, layabouts and druggies but you're in the right ball park. The step up to a 'good' place is massive there doesn't seem to be anything inbetween.

hcb42

there has to be a range of rental prices, surely?

Shreddies

hcb42 wrote: »

there has to be a range of rental prices, surely?

To a degree.

There's the dire house shares 7 in a house £200 - 240 p/w. Then the slightly nicer 'working' house shares £250 - £300 p/w (all including bills). Your next step up is renting a house / flat starting at £400 excluding bills. Which is a big hike.

(as you can guess I'm lower end - currently earning just £17500)

PasturesNew

hcb42 wrote: »

there has to be a range of rental prices, surely?

There is always a range... but if most of the range is out of your affordability then there's no range.

Shreddies

PasturesNew wrote: »

There is always a range... but if most of the range is out of your affordability then there's no range.

Yeah pretty much this.

But what I'm more interested in is from a budgetting POV what people think's a decent percentage of your wage to spend on it. 50% as one of the above posters says seems massive.

PasturesNew

Shreddies wrote: »

Yeah pretty much this.

But what I'm more interested in is from a budgetting POV what people think's a decent percentage of your wage to spend on it. 50% as one of the above posters says seems massive.

It's not really about %age, it's about what you've got left over.

If you say bills are £200/month and commuting is £100/month and food is £100/month, then add those to the rent and see how much you've left over for "life".

I've lived (er, survived) when I've got £50/month before I ate. Stayed in for years

DannyboyMidlands

I think that 40% is madness but depends on your long term goals. Personally I always saw renting as a temporary arrangement and that eventually I wanted to buy my own place. This meant that an "upgrade" for me would actually be a cheaper, grottier place where I could save more towards that goal.

I'd never go over 25%. Currently about 15% and healthy deposit sitting in the bank.

Househunter87_2

In the past I'd always been advised not to spend more than 30% of my income on rent/mortgage payments