Londoners are now spending a whopping 70% of average income on rent and essential bills as sky-high prices put even more homes out of reach, fresh research reveals.
Analysis from Portico London estate agents shows that for three and a half days of a Londoner's working week earns them enough to pay for rent, along with taxes, housing costs and household bills.
Portico’s research suggests that it is not until 1pm on Thursday that the average London worker has earned enough to cover all their essential costs, leaving them with around £201 disposable income to be spent on food and other items.
All day Monday, people living in the capital are working to pay their income tax and National Insurance, while from Tuesday morning to near close of play on Wednesday most Londoners just about earn enough to pay rent and bills.
The London Working Week – hour-by-hour from 9am-5pm
Based on the research, which analysed the data on a borough level, adjusting the cost of rent, council tax and travel to zone 1 accordingly, but using the average London salary of £34,320, found that Londoners renting in Bexley will have the greatest amount of disposable income leftover after rent and essential bills with £287.
In stark contrast, renters in the City of London have the least amount of disposable income at the end of the week, with £32.
If you want to be in Zone 1, Lambeth offers the largest amount of weekly disposable income for renters with £209.
Robert Nichols, managing director, commented: “Londoners have to work increasingly later into the week before they start to spend some of their hard-earned money. Working for five hours alone to pay income tax, plus almost two days on rent, clearly shows how private rents in the capital have skyrocketed.
“But while rents are increasing, public transport is also improving significantly, so we’re seeing a huge number of tenants move further out to boroughs like Bexley, Barking and Dagenham and Ealing to benefit from affordable rents, a quick commute, (which will become even better with the arrival of Crossrail), and a good sum of disposable income in their pockets at the end of each week.”