London renters spend almost half (45%) of average salaries on rent, exceeding Hong Kong (44%), Tokyo (42%), New York City (40%) but not San Francisco (47%).
London is the second most expensive city in the world to rent in after San Francisco, research from Barratt London has found.
London renters spend almost half (45%) of average salaries on rent, exceeding Hong Kong (44%), Tokyo (42%), New York City (40%) but not San Francisco (47%).
The average price of a one bedroom apartment stands at £1,250 per month in London, ranking it below New York (£2,532) and San Francisco (£2,768).
A spokesperson for Barratt London, said: “Rental prices in London continue to demand too much of the occupier, to the extent of almost half of their monthly pay cheque.
“Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers.
“The London Help to Buy scheme, for example, is helping first-time buyers get on the property ladder more affordably, with just a 5% deposit and an equity loan that is interest-free for the first five years.”
Cheap cities to rent in relative to incomes include Prague, Czech Republic (21%), Cape Town, South Africa (23%), Dublin, Republic of Ireland (25%) and Sydney, Australia (28%).
