20-some­things spend third of in­come on rent

Al­though the cost of rent­ing has fallen, it’s still a size­able ex­pense, says VICKY SHAW

Gloucestershire Echo - - HOME ADVICE -

TEN­ANTS in their 20s are fac­ing spend­ing around a third of their pre-tax in­comes on pri­vate rent typ­i­cally, ac­cord­ing to re­cent anal­y­sis. Across Britain gen­er­ally, the av­er­age 21-to-29-year-old now spends 34% of their pre-tax in­come on the typ­i­cal £566 cost of rent­ing a room in a house share. This is an im­prove­ment com­pared with 39% on av­er­age in 2017, es­tate and let­ting agents Hamp­tons In­ter­na­tional found, largely due to in­come growth. Its anal­y­sis of 20 ma­jor cities also sug­gested that Brighton, with its large stu­dent pop­u­la­tion, is the least af­ford­able city to rent a room, ac­count­ing for 35% of a 20-some­thing ten­ant’s in­come. Lon­don was in sec­ond place (34%), fol­lowed by Glas­gow (33%). Sh­effield was iden­ti­fied as the most af­ford­able city on the list, with room rents ac­count­ing for 25% of a ten­ant’s in­come on av­er­age. Aneisha Beveridge, head of re­search at Hamp­tons In­ter­na­tional, said that those want­ing to live alone would have to pay a pre­mium for the priv­i­lege, pay­ing 31% more on av­er­age to rent a one-bed­room home rather than rent­ing a room in a house share. Aneisha added “Ten­ants in their 20s spend a third of their pre-tax in­come on room rents in Great Britain. “Yet the cost of trad­ing up to rent a one-bed would take up nearly half of their earn­ings.” Hamp­tons In­ter­na­tional used its own fig­ures and Of­fice for Na­tional Sta­tis­tics (ONS) data to make the find­ings. The per­cent­ages of pre-tax in­come taken up by rent­ing were found to be lower in many cities than the av­er­age of 34%. Hamp­tons said rea­sons for this could in­clude ten­ants in larger cities of­ten hav­ing higher in­comes, and so the pro­por­tion of their in­come taken up by rent is lower.

Pay­ing rent takes up around a third of a young per­son’s in­come

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.