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What % of income on rent?

Discussion in 'Personal' started by Lazycat, Aug 21, 2019.

  1. Lazycat

    Lazycat Senior commenter

    My son starts his first proper job soon and is in the process of looking for somewhere to live. He’s asked my how much rent I think he should pay and I have absolutely no idea. When he was a student he just went for whatever was cheapest and the bills were usually included. Now that he’s working he’d like to live somewhere nicer. He knows he’ll probably have to pay bills and council tax, he’ll also have to factor in travel. He’s very frugal but I think it’s important that he’s able to afford a social life and save a bit each month

    What percentage of income would you suggest a young person spends on accommodation?
  2. CraigCarterSmith

    CraigCarterSmith Established commenter

    I think factoring in CT and Mortgage mine comes in at about 38% but obv the area and indeed country matters a lot
  3. Corvuscorax

    Corvuscorax Star commenter

    it was always about 75% for me.

    but a percentage is meaningless, isn't it, we don't know how much he earns.

    Just look on Zoopla and get an idea of the going rate in different areas
  4. Lazycat

    Lazycat Senior commenter

    Thank you. I’ve just worked out that 41% of my income goes on mortgage, utilities, council tax, insurance, car etc. That leaves enough for food, savings, holidays and socialising.
  5. Lara mfl 05

    Lara mfl 05 Star commenter

    I think you'll find renting can actually be more expensive than having a mortgage these days. At least that is my sons' experience. Son 1 pays arounf 50% less on his , admittedly relatively small mortgage, than his friend pays for renting. It's just renting means one can't save for that deposit to get started on the housing ladder, that so many young people are trapped in rental accommodation.

    Average prices around our area are roughly £500- £750 for 2 bed houses,and my son's friend is currently having to pay £850 for a 3 bed :( as they have a family. Council tax and utilities are on top of that, so you could work out what percentage of the wage that might be.

    Go on zoopla or rightmove sites and input area and 'Rental' (as opposed to for sale) to find out what prices are like in the area where your son is looking, which will give a more realistic picture for your son.
  6. mothorchid

    mothorchid Star commenter

    I'd reckon somewhere between 35 - 45% would be about right, but that might not include bills. What do local letting agents suggest when they look at what he can afford? They will know best.
  7. Lazycat

    Lazycat Senior commenter

    He’s in a relatively inexpensive part of the country and is probably earning a bit more that a teacher’s starting salary. He can probably afford to live somewhere decent and outside the student area but we don’t want him to overstretch himself
  8. grumbleweed

    grumbleweed Lead commenter

    I think it's more about the costs in the area. Where I live, a 1 bed flat would be 600 to 650, without bills, so if you're brining home, say 2000 a month, you could easily be spending up to 40 to 50% on rent and bills. At a rough, you'd probably need to earn 32k to take home 2k a month. So a much smaller salary could eat up 60% or more in rent or bills. Which is why lots of people stay at home, house share or rely on BoMAD.
  9. letap

    letap Occasional commenter

    You need to factor in whether he will be receiving pay rises - especially if he is looking long term. Clearly he needs to budget for his living expenses - the hope being that he is able to make savings. At the end of day he also needs to consider if where he lives is just somewhere he sleeps - spending more time elsewhere or having other priorities or whether where he lives is the hub of his personal/social life. Personally, my monthly rent is very low - as long as I am comfortable - housing is not a massive issue for me.
    The article below may offer some perspective:
  10. CraigCarterSmith

    CraigCarterSmith Established commenter

    no way! 600-650 for a 1 bedroom- WITHOUT bills ??!??!
  11. Lazycat

    Lazycat Senior commenter

    Hmmm. Lots of food for thought here. Thank you.

    He’s going to be working in the centre of Manchester and would like to walk or cycle to work. He’s very shy so I’m keen for him to live in a shared house so that he has a better chance of meeting people. He’s previously lived in Fallowfield but doesn’t really want to do the whole student thing again. This job is for a year, initially, so renting really is the only option for him.
  12. smoothnewt

    smoothnewt Star commenter

    My daughter and her boyfriend pay £1350 per month - rent only - for their one-bedroom flat in SE London. Everything is relative.
  13. FrankWolley

    FrankWolley Star commenter

    Our daughter and boyfriend are just about to move into a one bedroom flat in London at £1560 pcm rent, plus bills. Partly furnished... (For those who know London, it's in Dalston...Not Mayfair!)
  14. Doitforfree

    Doitforfree Star commenter

    Shared houses are horrid, and never proved fertile ground for making friends in my experience. My sons realised that it's well worth paying a bit more to have your own place. In Manchester he should be able to afford a little flat. My boys in Cambridge pay about £700 - £800 a month for their one bedroom flats, and London son pays £1200.
  15. maggie m

    maggie m Senior commenter

    Daughter paid £520 a month for a one bed flat in Leeds in 2016, about 25% of her income. She now pays about the same for a mortagage on a two bed terraced house.
  16. stanley4shoes

    stanley4shoes Occasional commenter

    My rent is about 60% of my income, but income low and house bigger than I need. That's tight but doable. My income will go up soon, and ultimately i'm hoping to buy the house I'm renting, ball park estimate is that the mortgage would be a couple of hundred each month lower than the (fair for the house and area) rent
    Lara mfl 05 likes this.
  17. nomad

    nomad Star commenter

  18. stanley4shoes

    stanley4shoes Occasional commenter

    i think my area is relatively normal in terms of pricing and I (single) found that there was barely any difference between a one bed flat and a two bed house - in fact some times the house was cheaper. It's worth him weighing up the market in the area he's looking at.
    Lara mfl 05 likes this.
  19. nomad

    nomad Star commenter

    Lara mfl 05 likes this.
  20. Lazycat

    Lazycat Senior commenter

    Lara mfl 05 likes this.

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