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Londoners need to have double salary to afford rent, compared to any other UK city PDF Print E-mail
Wednesday, 14 February 2018
Furnished apartment search engine, Nestpick, have released a study which reveals the minimum salary required for individuals to rent an apartment in 8 UK cities. The data details the cost of both furnished and unfurnished single-capacity apartments, standardized as 420 sq ft based on Housing Standards advice by the Greater London Authority. The principle that renters ought to pay no more than 29% of their gross earnings on rent is published in a report Loughborough University, a top UK institution. The results reveal that you must earn the highest minimum monthly salary in London to afford rent, followed by Reading and Edinburgh. Glasgow, Aberdeen and Leeds are the most affordable UK cities for renting.

“The Office for National Statistics reported that the average annual wage for a full-time worker in the UK was £28,600 in April 2017. According to our study, this means that the majority of UK cities ought to be considered affordable in terms of rent for the average person.” comments Ömer Kücükdere, Managing Director of Nestpick. “That in London you must earn £20,000 more per year than the average citizen in order to afford rent, and retain a high quality of life, is very telling of the current housing situation in the UK’s capital city. We hope that this study will highlight this disparity and perhaps encourage any fed-up Londoners to explore the many more affordable options around Great Britain, and abroad.”

These results are part of a larger study, The Furnished Apartment Index, which looks at the cost of renting both furnished and unfurnished apartments in 100 cities around the world. With professionals seeking more and more opportunities abroad, Nestpick created a resource to help expats, short-term movers and consultants find the most financially viable type of apartment to rent. For this reason, the study looks only at current asking prices for apartments, and is not indicative of the average rent paid in each city.

The research began by hand-picking 100 cities for the final index, focusing on capitals, economic centres, and large expat hubs, as well as cities with an IKEA store. By choosing a well-known furniture retailer with an international presence, the study was able to directly compare the cost of equipping an apartment with the exact same set of furniture. The study then looked at the online asking price of both furnished and unfurnished apartments in every city’s greater metropolitan area, focusing on two size classes; single-person apartments (39m2 /420 sq ft) and family apartments (74m2 /797 sq ft). These sizes are based on the Housing Standards advice published by the Greater London Authority.

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