Worried about salary to rent ratio

Shadowdnight

Hi I need to move to London for a new job with a salary of £23,000. I've found some excellent house shares convenienty 3 of them with the same lovely landlady. They are £850 , £875 and £900( absolutly massive room,originally 950 but as it's already vacant she wanted it taken as soon as possible) all bills included and C Tax. The landlord needs employee reference. I've heard the ratio is typically 2.5 an impossible task for most starting a career in London. There's the usual agency fees and there's also a holding fee of £200 (removed from deposit on move in not returned if you decide not to move in) and I'm worried if I don't pass the checks I'll out £300.

I'd preferably like to go with the 875 one but are my odds much higher if I was to go with the 850?

Shadowdnight

Most landlords (or at least their agents) use simple affordability calculators. According to the one above you would need to be on at least £26k to "afford" £850 PCM. Of course this assumes typical expenditures on food, leisure, transport etc so obviously if you cut back on those you could still mathematically afford it, and if you're renting directly from the landlady it's possible she won't use such stringent checks.

It's best to speak to her directly before you shell out for holding fees etc.

I would suggest finding something more affordable but in London there aren't many options as whatever you save in rent you lose in transport costs (unless you live in squalor). It's tough, I moved to London when I first graduated on just under £40k and still could only afford a house share / studio flat. It gets better.

I've done my calculations and I can survive on 875 rent, I'm quite frugal on a lot things. I absolutly can't go without an ensuite where ever I end up which really bumps up the price unfortunately.

I'm not really sure what exactly to say to her without making it seem like I'm not confident I can pay the rent even though I am.

[Deleted User]

What I did when renting privately was take bank statements to show I paid my bills including rent regularly. I also took a budget to show what I spent money on and that I could afford x rent.

This helped a lot.

I'd do this, and ask the LL what she considers an appropriate salary for the rent, then start discussing. Do it positively and I am sure she will see that you are being responsible rather than otherwise.

Lokolo

Moving to London on a salary for £23k is not really sustainable. The question I have to ask is why?

Shadowdnight

Moving to London on a salary for £23k is not really sustainable. The question I have to ask is why?

Don't really have much choice, the career(VFX Artist) i've chosen is notorious for severely underpaying for the amount of work hours you'll end up doing definitely at the big three. Most of the industry in England is based in London mostly Soho.

It's my first full time job in the industry so i'm sure my salary will go up after the first 3-5 years. And probably after the first 2 I could leave and find a smaller company that pays so much more. With the work i'll be doing in the first 2 years i'll have an incredibly good portfolio for future jobs. At this point I think i'm just going to have to find some !!!! hole for £600 pcm and try not to get stabbed or acid thrown on me when walking to the station.

NineDeuce

Shadowdnight wrote: »

Don't really have much choice, the career(VFX Artist) i've chosen is notorious for severely underpaying for the amount of work hours you'll end up doing definitely at the big three. Most of the industry in England is based in London mostly Soho.

It's my first full time job in the industry so i'm sure my salary will go up after the first 3-5 years. And probably after the first 2 I could leave and find a smaller company that pays so much more. With the work i'll be doing in the first 2 years i'll have an incredibly good portfolio for future jobs. At this point I think i'm just going to have to find some !!!! hole for £600 pcm and try not to get stabbed or acid thrown on me when walking to the station.

Without being glib though, you would probably be better off on the minimum wage outside London.

[Deleted User]

I think the OP is saying they have to work in London for their chosen career. Your advice isn't really helping.

There are other things a person gains from working in London as well. I think a room for £800pcm should be achievable and doesn't mean living in the worst areas.

Try (I keep mentioning this company after seeing how well it worked for my ex) Openrent, so you are dealing directly with the LL rather than an agency (and no admin fees normally).

aneary

deannatrois wrote: »

I think the OP is saying they have to work in London for their chosen career. Your advice isn't really helping.

There are other things a person gains from working in London as well. I think a room for £800pcm should be achievable and doesn't mean living in the worst areas.

Try (I keep mentioning this company after seeing how well it worked for my ex) Openrent, so you are dealing directly with the LL rather than an agency (and no admin fees normally).

The OP is looking at a houseshare 'Spareroom' is generally the most popular in London.

HWG

That sounds about right (both the rent amount and the salary for an entry level job).

You won't have much spare cash, but you'll be able to live and build up your career.

Debtslayer

Shadowdnight wrote: »

Hi I need to move to London for a new job with a salary of £23,000. I've found some excellent house shares convenienty 3 of them with the same lovely landlady. They are £850 , £875 and £900( absolutly massive room,originally 950 but as it's already vacant she wanted it taken as soon as possible) all bills included and C Tax. The landlord needs employee reference. I've heard the ratio is typically 2.5 an impossible task for most starting a career in London. There's the usual agency fees and there's also a holding fee of £200 (removed from deposit on move in not returned if you decide not to move in) and I'm worried if I don't pass the checks I'll out £300.

I'd preferably like to go with the 875 one but are my odds much higher if I was to go with the 850?

You say the ratio is normally 2.5 times but is that normally just for rent? The above figures include bills and council tax so would that be taken into account with calculations.
If you like these rooms then I would stick to going for one of them. You need to feel safe and comfortable where you live, especially when you are just moving to London and starting a new job
Good Luck

caronoel

What part of London is your job? Where are you looking to rent?

If you are in Shoreditch, for example, there are plenty of fast trains into Liverpool Street from areas that might work out better value for rental. Don't forget to factor in higher commuting costs.