Most Londoners don’t need reminding how expensive the capital city is, however after looking into property prices we found that London has passed a milestone that shows just how bad its rental market has become.
By conducting research into how much a tenant would have to make an hour in order to rent a one-bed flat in London, we discovered that not one of the city’s postcode offers affordable housing for workers making minimum wage (£7.20 an hour for workers aged 25 and over).
In this instance affordable was taken to mean spending less than half your income on rent.
To see how much you need to make an hour in to be able to afford the rent on a one-bed property in each of London’s post codes visit the map.
The research also showed that if London adopted the London Living Wage (£9.40 an hour) proposed by the Living Wage Foundation the only postcode that would offer one-bed rentals would be Abbey Wood, a South East London suburb in Zone 4.
Housing and homelessness charity Shelter say that affordable housing is defined as spending no more than 35% of your income on rent, however as this data shows, this is an unrealistic goal for many renters in London.
The most expensive postcode area is of course in London’s famously expensive central area, where renters would have to make £49.19 per hour (around £162,000 a year) in order to afford a one-bed in the heart of London’s financial district in EC3 without spending more than 50% of their wages on rent.