What percentage of my salary should go to rent?

TheLearner2008

Hi there - I earn £30k a year and my room rental is £750 including all bills in London.

What percentage of one's salary should go to rental? I think I am maybe paying too much.

Lokolo

That's OK but it does depend where in the country you are.... for example, if you are in London, that's pretty cheap, but if you are in Newcastle....

TheLearner2008

Lokolo wrote: »

That's OK but it does depend where in the country you are.... for example, if you are in London, that's pretty cheap, but if you are in Newcastle....

I live in Vauxhall, London, Zone 1

Horseunderwater

TheLearner2008 wrote: »

Hi there - I earn £30k a year and my room rental is £750 including all bills in London.

What percentage of one's salary should go to rental? I think I am maybe paying too much.

If that includes council tax all utilities etc and food, then that is extremely reasonable anywhere in the country. Use your excess income to save for a deposit on your own place and try not to use credit cards. Def sounds like you can or should be able to do something savings wise fairly quickly.

TheLearner2008

Horseunderwater wrote: »

If that includes council tax all utilities etc and food, then that is extremely reasonable anywhere in the country. Use your excess income to save for a deposit on your own place and try not to use credit cards. Def sounds like you can or should be able to do something savings wise fairly quickly.

No my room rental does not include food.

Itismehonest

There is no percentage as such.
It depends on where you live, what sort of home you want & how much you can afford overall.
If you feel that you are spending too much the only way is to make comparisons of rent with other, similar places locally. Even then it will only tell you if you are paying more, the same or less than others locally. The only way to pay less may be to move.

CLAPTON

obviously as little as possible consistent with how much you value where you live compared with other uses for your money

al25

TheLearner2008 wrote: »

Hi there - I earn £30k a year and my room rental is £750 including all bills in London.

What percentage of one's salary should go to rental? I think I am maybe paying too much.

£750 PCM for a room in vauxhall, I believe is a bit too high. I know of a couple of people who share a flat in the same area who only pay between £550~£650 including all bills.
But then again if you are sharing a riverside penthouse, thats a good deal.

TheLearner2008

al25 wrote: »

£750 PCM for a room in vauxhall, I believe is a bit too high. I know of a couple of people who share a flat in the same area who only pay between £550~£650 including all bills.
But then again if you are sharing a riverside penthouse, thats a good deal.

It's not riverside no, but its a nice flat very close to the station. I used to pay £550/month and it was a horrible council building with no living room.

bargainbetty

Break it down a bit - Half the council tax is probably £50 per month, gas/electric for two people in a share would be at least £40-50 each, use of internet, tv, phone etc £20-30 per month, £10 towards insurance, service charges could be another £50, (so nearly £200 in bills) and then your room.

For a Z1, near the station, I don't think that's a bad deal. You'd pay approx £650 in Z4, and have all the additional travel bills too.

TheLearner2008

bargainbetty wrote: »

Break it down a bit - Half the council tax is probably £50 per month, gas/electric for two people in a share would be at least £40-50 each, use of internet, tv, phone etc £20-30 per month, £10 towards insurance, service charges could be another £50, (so nearly £200 in bills) and then your room.

For a Z1, near the station, I don't think that's a bad deal. You'd pay approx £650 in Z4, and have all the additional travel bills too.

It's actually a 3 bedroom flat with separate living room, kitchen and 1 bathroom but nevertheless I suppose its an okay deal. I think the balcony on my room makes it more expensive and its a large room.

I will have to cut my expenses in other areas.