North Londoners now spend over 76% of income on rent
- Credit: Archant
New data shows the shocking amount of monthly income residents of London boroughs are having to spend on rent, with Camden coming out third least affordable
Research released today by London mayoral candidate Sadiq Khan shows north London residents are paying over three quarters of their monthly wages on rent.
Camden residents, who have a median monthly earning of £3,130, end up spending 76 per cent of their income on rent a month.
This is according to figures compiled by Khan’s campaign team from the House of Commons library.
In Westminster, where the median monthly income is £3,320, this figure rises to an eye-watering 94 per cent of monthly earnings.
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Of all the London boroughs only Chelsea is more expensive in terms of average rent versus average income.
In Haringey the ratio is slightly less extreme. With a median income of £2,510 residents spend on average 59 per cent of their monthly income on rent.
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According to the study the average Londoner spends 62 per cent of their pre tax income on rent.
This is up from just 49 per cent in 2010 and is significantly higher than the limit for housing costs to be classified as ‘affordable’, set at one third of income.
As London rents continue to rise while incomes stagnate, there are fears the Housing Bill currently being debated in Parliament will only serve to exacerbate the situation.
Using the data to make his argument against the Bill, Mr Khan said it would “do nothing for Londoners struggling to pay their rent every month.”
Separate research from estate agents Your Move reinforced Mr Khan’s statement. It found that the number of tenants in rent arrears was at its highest level since Q2 2013 and had risen 13.2 per cent between Q2 and Q3 2015.
This represents more than 10,000 additional tenants in serious financial difficulty.