Many London renters are feeling a new level of stress and concern as they continue to pay more and more to live the same lifestyle they were living before, as Nick Millican explains. Concerning the housing industry, the average person in London is spending up to 42.3% of their income on rent.
Thi figure is significantly over the recommended percent of one’s income that should be going to housing expenses. Add in the costs of utilities and other housing expenses, and it’s no wonder that so many people are feeling the pinch in their pocketbooks when it comes to paying rent every month. And real estate agents such as Nick Millican are well aware of this.
Those who earn lower-to-average incomes are feeling this even more than those who are taking home a little bit more money in their paychecks each month. Anyone paying more than 30% of their income in rent is deemed to be “rent burdened”. However, Nick Milican shares, as the supply of rental homes within London dwindles, more and more renters are being deemed “rent burdened”.
In addition, with rents only predicted to rise in 2024 and beyond, this problem is likely to get a lot worse before it gets better, real estate agent Nick Millican adds. Many landlords are overwhelming tenants with a rental cost so high that only a few can truly “afford” to pay the cost of renting the property in which they are living.
Most landlords say that rent should probably go up at least 5-10% in the coming year, and maybe more, Nick Millican comments. However, what tenants expect to be paying any more than 5% more in the next year than they are now, which signals that they may be in for a rude awakening as prices continue to skyrocket in 2024.