How do they calculate how much you need to earn to afford monthly rent?

lindaCrow62

I am currently renting a 1 bed flat for £675pm.  I’m looking to move and finding it impossible as estate agents insist I need to earn £27,000pa in order to afford a rent of £750pm!  I’ve offered to pay 6 months rent up front, but still they are not interested.  However, looking online at rent calculators, it says that I would need to earn about £22500pa.  Why the difference?
I know I can afford the rent, why are they insisting such high figures for a basic one bed flat/ house.  I wish I did earn £27k a year, but would hope I could afford something better to live in.  I feel this is especially hard for single renters. If I had a partner then it would be easy to meet the £27k target.  

GDB2222

The usual check is pretty straightforward, namely multiply the monthly rent by 30.
30 x £750 = £22,500, and that's what the online calculators have shown.

Unfortunately, the estate agents can use whatever multiplier they want. This particular agent used 36 in your case. If they always use 36, that's okay. It's their prerogative to be extra careful.

On the other hand, if they normally use 30, but used 36 in your case, because you are a woman (or black, or young, or old, or a Moslem, or a Christian) that would be illegal discrimination. But, it would be hard  to prove. 

So, I'm sorry, but you are best off to find another agent. 

moneysavinghero

Rental market is crazy at the moment. Landlords can afford to be more picky in who they take than in normal times. Higher the salary the less risky is it for them is the way that they view it.