The 2017 ‘Rent Affordability Index’ research, carried out by nested.com, shows that the average salary for a singleton to live alone in London has soared to more than £40,000/yr, and a family of four need an income of more than £75,000/yr
The research shows that London is the 11th most expensive city in the world to live in, based on a square footage alone, we however know utilities and goods and services tend to be much, much, higher in UK and London in particular.
The report continues to identify that an individual earning The London Living Wage of £9.75hr would need to work 12hrs, every day of the year to reach this income threshold.
When looking at city comparators across the U.K.- London unsurprisingly takes the stop spot, but what is shocking is the difference between London’s first place (£39,876.84) and 2nd (£20,737.20) places is £19,139.64, almost 50% variance.
Update: some have written to say that they disagree with this average rents for their area. Consistently, but only anecdotally, said they’re higher, in London or otherwise. That aside, this blog is focussed more about the loss of the life stage of living by yourself, whether as a transition army between professional sharer and starting a family, but equally about the financial trap individuals, who may have had a relationship breakdown, but can not afford to live alone. This will disproportionately affect women, and those less economically active.
In January 2014, Land Registry figures showed average house prices across the whole of England and Wales were £168,536, but in London the average was £409,881 (143% higher than the England/Wales rate). This house price gap has been growing ever larger, with London experiencing 10.9% growth over the last year, compared to 4.2% across England and Wales.
The same picture is apparent in the private rented sector, with the the England rental rate runnings at £665 a month in January 2014, compared to £1,516 a month in London (128% higher than the England rate). The differential in local authority rented property is less exaggerated but still significant, with average rent across England running at £79 a week in 2012/13, compared to £99 in London (25% higher than the England average).
London Weighting is not the answer, Unison’s Bargaining Support Unit undertook a review for 2013/14 into London Weighting across seven sectors, this ‘top up’ is pitiful compared to the cost differential.
But what can Lewisham do?
Next week I’ll be attending my new role on Lewisham’s Poverty Taskforce, alongside Joseph Rowntree Foundation and the Trust for London, looking This came off the back of work I undertook in my Lewisham Councillor Scrutiny role,
The Committee will be pursuing the following issues:
- Tackling in-work poverty in the borough
- Tackling out-of-work poverty, namely for pensioners relying on state pensions
- Tackling poverty prevalent amongst young families struggling with a
combination of housing and child care costs
- Ensuring residents are proactively informed about legislative changes that
could impact both positively and negatively on their income and general
- Staying up-to-date on legislative changes and advise on appropriate changes
to the Council’s work accordingly.
2017 ‘Rent Affordability Index’