Ondon tenants are being forced to increase their rent income more than ever, but new data show that there are still some cheap corners to be found.
A survey of affordable housing by the rental platform Ocasa identified the cheapest zip code in the capital and named South Croydon (CR2) the most affordable destination in the city.
Zone 5/6 patch tenants covering Thunderstead and Selsdon spend only 21% of their average household income on rent (£ 15,024).
According to the definition of the National Bureau of Statistics, rents of less than 30% of household income are considered “affordable”. Only a handful of London zip codes fall below this threshold.
The next cheapest zip code is in nearby Sutton, with an average annual rent of £ 15,468, calculated at 26% of your average household income (£ 59,300).
On the eastern side of Bromley, annual rents have risen to £ 16,632, consuming 27.5 percent of average household income (£ 60,500).
The fifth cheapest rent area is Ruislip, in the western part of London, Hillingdon, which accounts for 28% of the average income in the area and costs £ 16,548 per year.
Rents in the capital are now at record highs, boosted by extreme housing stock shortages and soaring living costs. Real estate site Rightmove reported a 14.3% leap in the first quarter of 2022, with an average current rent of £ 2,193 per month.
The most affordable autonomous region to rent
|
region |
Average annual rent |
Average household income |
Affordable rental |
|
CR2 (Croydon) |
£ 15,024 |
£ 59,700 |
25.2% |
|
SM2 (Sutton) |
£ 15,468 |
£ 59,300 |
26.1% |
|
BR2 (Bromley) |
£ 16,632 |
£ 60,500 |
27.5% |
|
CR3 (Croydon) |
£ 16,080 |
£ 58,000 |
27.7% |
|
HA4 (Hillingdon) |
£ 16,548 |
£ 58,800 |
28.1% |
There are still some cheap pockets on the outskirts of London, but overall, London was the only “affordable” region in England and Wales.
London’s average income is £ 54,194, but rent consumes 40% of this and the average annual bill is £ 21,439.
The most expensive zip code for renters in London
According to Okasa data, the top 10 most expensive zip codes to rent in England and Wales are all located in the central districts of the capitals such as Westminster, Kensington, Chelsea and Camden.
At the top of the list is SW1, where 77% of household income is spent on rent. Other zip codes with very high rents are Covent Garden and Lester Square (WC1), where rent accounts for 74% of household income, and Kensington Gardens and Paddington (W2), where rent costs 72%.
Jack Godby, Head of Sales and Marketing at Okasa, said: area. “
Nonetheless, there are some pockets that fall below the 30% affordable threshold and provide bright light for the city of London with much more reasonable admission. “
Dan Wilson Crow, Deputy Director of Generation Rent, said: Still, many landlords use it as an excuse to squeeze more rent from their existing tenants. “
Crow further said: To meet the demands of those who need to live in London, we need to build more homes and raise local housing allowances while abolishing benefit caps. That way, the benefit tenant can live somewhere. “