Skip to main content

Why Earning £6.50 an Hour Isn’t an Option in London

london maps
Here is what you really need to earn to rent a 1-bed in each postcode. has mapped the real minimum wage needed to rent a 1-bed in all 120 London postcodes. Each figure (as seen below) represents the hourly wage that an individual must earn working 37.5 hours a week, for a one-bedroom rental, without paying more than 50% of their income. While the Mayor’s definition of 'affordable' is spending 35% of your income on rent, for many Londoners it's far from reality. Findings include:

  • Abbey Wood, a South East London area in Zone 4, is the only postcode out of 120 that is affordable on Minimum Wage.
  • Meanwhile, the London Living Wage only affords you 2 out of 120 postcodes: Abbey Wood and Enfield in Zone 6.
  • George Osborne's annual Minimum Wage raise of 3% is only half of that forecast for rent at 6% per year.
  • In gentrified areas such as Stratford and the Tower Hamlets' postcode of E14, you'd need to earn £39,500 and £52,800 a year respectively.
  • To live in EC3, London's most expensive postcode, you would need to work 106 hours a day on Minimum Wage.

With around 700,000 people in the capital earning less than the Living Wage, that's a lot of people chasing a decreasing amount of cheap properties. As the gap between the wages people earn and the price of decent housing widens, the calculations speak for themselves. Rental costs have grown significantly in recent years due to a number of factors, the main being supply failing to keep pace with demand, stagnant wages and rising house prices. This research clearly demonstrates the scale of the housing crisis in London and how the increased minimum wage, and even the London Living Wage, is no longer enough to live on in the capital. Notes: Key data from Figures calculated using

For more information, please contact the press team

About TotallyMoney

With a focus on the one in three UK adults financially under-served by the financial services industry, TotallyMoney is the credit app on a mission to help everyone move their finances forward.

TotallyMoney believes people’s financial data should work for them, and not against them and with more than four million customers, they provide the UK’s only free, live credit score and report.

Its service helps customers understand their financial position and provides personalised recommendations so they can start creating financial momentum. TotallyMoney also works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.

TotallyMoney is regulated by the Financial Conduct Authority (FCA).

We're on a mission to help everyone move their finances forward and gain financial momentum.

TotallyMoney is an independent credit broker, not a lender. Our comparison service works with most leading lenders, covering the majority of the market. Though we may be paid a fee by lenders or brokers this never influences how our products are ranked.

We don't provide financial advice. Product information is obtained from independent sources and rates displayed may vary depending on your personal circumstances. While we make every effort to ensure that information is up to date, you should always confirm the terms of the offer with the product provider.

TotallyMoney is owned and operated by TotallyMoney Limited which is registered in England and Wales (Company Registration Number 06205695). TotallyMoney Limited is an Appointed Representative of TM Connect Limited, which is registered in England and Wales (Company Registration Number 06967012) and authorised and regulated by the Financial Conduct Authority in respect of consumer credit related activities (FCA FRN: 511936). Trading Address and Registered Office: Chapter House, 16 Brunswick Place, London N1 6DZ. Credit is available, subject to status, only to UK residents aged 18 or over.

We use cookies as described in our Cookie Policy. Continue browsing or click to accept.