A new tenant is now paying on average £738 a month in rent outside London, as the cost of living in the private rented sector continues to spiral in all regions of the UK.
The above is the opening sentence in a 24Dash article today of a report from HomeLet and it goes on to say that average private rents have increased 10.7% over the year and it says for only the third time ever in the last 5 years have rents risen in ALL areas of the country in the same month.
Leave aside whether or not HomeLet have an interest in private rent levels rising or not and the issue that struck me is affordability and hence the title of this very short post – the need to earn £17.95 per hour to afford private rented property.
All definitions of affordability in all forms of housing for many years have said that rent should be at most 33% of your net income and to be able to afford £738 per month you need to be earning a gross salary of £34,530 per year or on a 37 hour week £17.95 per hour.
This is 2.76 times the national minimum wage and more than double the so-called ‘living wage’ which politicians like to cite at every turn of £7.85 per hour in 2015.
Think on that as if a couple are both on the so-called ‘living wage’ they will each have a net wage of £1,113.25 per calendar month and a joint net income of £2,226.50 or which 33% is £742. Or if just a single person is on this so-called living wage outside of London then the average private rent of £738 is equal to 66.29% of their wage
The “Living Wage” is just an artificial meaningless bullshit construct…no wonder MPs of all parties like it!