Tenants living in London now have an average £2700 less disposable income per year, than three years ago, such has been the rise in London rents. The average cost of renting a home in Greater London stood at £1316pcm in August the third consecutive all-time monthly high. In contrast average earnings for tenants in the capital dropped slightly to £35200 pa.
If you look at potential take home pay and factor in pension payments and student loans, a tenant in London, living alone, could pay 65% of net income in rent.
It must be hoped that the "Build-To-Rent" housing scheme will begin to increase the volume of private rented stock which would see a more sustainable growth in rental values.