Afford | Frost Magazine

To rent the recommended space for one person, Londoners must pay an average of £963.76 per month.
On average, Londoners must earn a gross salary of at least £3,323.07 per month to afford to live alone and meet additional living costs. That equates to a gross salary of £39,876.84 per year.
A family living in London must earn an average of £6,305.31 per month to cover rent plus living costs. That equates to a gross salary of £75,663.72 per year.

Nested.com, the London based online estate agent, produced the Rental Affordability Index. The study illustrates the price of renting per square metre in 33 London boroughs, 15 UK cities and 72 cities worldwide. Based on this, the research could further convey the minimum gross salary required to support an individual and a family of four in rented property, based on the minimum space recommended for one person, and for a family.

The comprehensive study was undertaken in order to understand the costs associated with renting as an individual and as a family, and to determine whether cities are becoming increasingly unaffordable. The inclusion of specific results for each of the 33 London boroughs allows easy comparison between regional and global cities to the UK capital, with its much-publicised unaffordability.

The price per square metre of property was calculated based upon current market listings for all locations researched, whilst the minimum space recommended for one person and four people is laid out in guidelines from the Greater London Authority.1 The gross salary guideline was included to help illustrate relative affordability.2

London

To rent a property of the minimum space recommended for one person, Londoners must on average pay £963.76 per month.
Taking into account the recommended maximum 29% of income which should be spent on rent,2 on average a Londoner needs to earn a gross salary of £3,323.07 per month to live alone. This equates to £39,876.84 per year.
In London, the minimum space recommended for a family of four requires a monthly income of £6,305.31. This equates to an annual salary of £75,663.72.
The least affordable borough to rent in London is Kensington and Chelsea, where rent per square metre is £72.40 per month.
To afford to rent alone and cover additional living costs in Kensington and Chelsea, an individual needs an income of £9,736.55 per month, or £116,838.60 per year.
To afford the rent for the minimum space recommended for a family of four in Kensington and Chelsea, a monthly income of £18,474.48 is needed. This is equal to an annual income of £221,693.76.
The most affordable borough to rent in London is Bexley, where rent per square metre is £13.30 per month.
To afford to rent alone and cover additional living costs in Bexley, an individual must earn an income of £1,788.62 per month, or £21,463.44 per year.
To afford the rent for the minimum space recommended for a family of four in Bexley, a monthly income of £3,393.79 would be required, equal to an annual income of £40,725.48.

The results for London, ranked by the cost of rental per square per metre, are as follows:

	Borough	Cost Per Sq. Metre	Monthly Rental for a Single Person	Yearly Income Needed to Afford Single Person Rental	Monthly Rental for a Family	Yearly Income Needed for to Afford Family Rental
1	Kensington & Chelsea	£72.40	£2,823.60	£116,838.60	£5,357.60	£221,693.76
2	City of Westminster	£54.82	£2,137.98	£88,468.08	£4,056.68	£167,862.60
3	City of London	£44.42	£1,732.38	£71,684.64	£3,287.08	£136,017.12
4	Camden	£39.50	£1,540.50	£63,744.84	£2,923.00	£120,951.72
5	Hammersmith & Fulham	£32.86	£1,281.54	£53,029.20	£2,431.64	£100,619.64
6	Islington	£32.34	£1,261.26	£52,190.04	£2,393.16	£99,027.36
7	Wandsworth	£31.69	£1,235.91	£51,141.12	£2,345.06	£97,036.92
8	Southwark	£31.29	£1,220.31	£50,495.64	£2,315.46	£95,812.08
9	Lambeth	£30.53	£1,190.67	£49,269.12	£2,259.22	£93,484.92
10	Haringey	£26.65	£1,039.35	£43,007.64	£1,972.10	£81,604.08
11	Hackney	£25.72	£1,003.08	£41,506.80	£1,903.28	£78,756.36
12	Richmond upon Thames	£23.49	£916.11	£37,908.00	£1,738.26	£71,928.00
13	Merton	£22.42	£874.38	£36,181.20	£1,659.08	£68,651.64
14	Tower Hamlets	£21.70	£846.30	£35,019.36	£1,605.80	£66,446.88
15	Barnet	£21.67	£845.13	£34,970.88	£1,603.58	£66,355.08
16	Brent	£20.89	£814.71	£33,712.08	£1,545.86	£63,966.60
17	Kingston upon Thames	£20.50	£799.50	£33,082.80	£1,517.00	£62,772.36
18	Ealing	£20.47	£798.33	£33,034.32	£1,514.78	£62,680.56
19	Enfield	£19.00	£741.00	£30,662.04	£1,406.00	£58,179.36
20	Waltham Forest	£17.70	£690.30	£28,564.08	£1,309.80	£54,198.60
21	Hounslow	£17.47	£681.33	£28,192.92	£1,292.78	£53,494.32
22	Harrow	£17.17	£669.63	£27,708.84	£1,270.58	£52,575.72
23	Lewisham	£16.82	£655.98	£27,144.00	£1,244.68	£51,504.00
24	Greenwich	£16.52	£644.28	£26,659.92	£1,222.48	£50,585.40
25	Newham	£16.50	£643.50	£26,627.64	£1,221.00	£50,524.08
26	Sutton	£16.08	£627.12	£25,949.76	£1,189.92	£49,238.04
27	Redbridge	£15.92	£620.88	£25,691.64	£1,178.08	£48,748.08
28	Hillingdon	£15.83	£617.37	£25,546.32	£1,171.42	£48,472.56
29	Bromley	£15.70	£612.30	£25,336.56	£1,161.80	£48,074.52
30	Croydon	£15.30	£596.70	£24,691.08	£1,132.20	£46,849.68
31	Barking & Dagenham	£14.94	£582.66	£24,110.04	£1,105.56	£45,747.36
32	Havering	£13.88	£541.32	£22,399.44	£1,027.12	£42,501.48
33	Bexley	£13.30	£518.70	£21,463.44	£984.20	£40,725.48
	Average across 33 boroughs	£24.71	£963.69	£39,876.84	£1,828.54	£75,663.72

UK cities:

The second most expensive UK city for rent prices is Edinburgh at a cost of £12.85 per square metre.
The most affordable city to rent property is Belfast at £6.29 per square metre.
An income of £1,728.10 per month is needed for single habitation in Edinburgh. That equates to an annual salary of £20,737.20 per year
To afford family rental in Edinburgh, a monthly income of £3,278.97 is needed. That equates to an annual income of £39,347.64.
An income of just £845.90 per month is needed for single habitation in Belfast. That equates to an annual salary of £10,150.80 per year.
To afford family rental in Belfast, a monthly income of just £1,605.03 is needed. That equates to an annual income of £19,260.36.
Single rental in London is more expensive than family rental in any other UK city.
Three of the UK cities made the top 50 global cities list (London, Edinburgh and Bristol)

The top 15 results for the UK cities list, ranked by the cost of rental per square per metre, are as follows:

	City	Cost Per Sq. Metre	Monthly Rental for a Single Person	Yearly Income Needed to Afford Single Person Rental	Monthly Rental for a Family	Yearly Income Needed for to Afford Family Rental
1	London3	£24.71	£963.69	£39,876.84	£1,828.54	£75,663.72
2	Edinburgh	£12.85	£501.15	£20,737.20	£950.90	£39,347.64
3	Bristol	£11.22	£437.58	£18,106.80	£830.28	£34,356.36
4	Southampton	£10.68	£416.52	£17,235.36	£790.32	£32,702.88
5	Manchester	£9.79	£381.81	£15,799.08	£724.46	£29,977.68
6	Aberdeen	£9.61	£374.79	£15,508.56	£711.14	£29,426.52
7	Cardiff	£9.24	£360.36	£14,911.44	£683.76	£28,293.48
8	Leeds	£8.92	£347.88	£14,395.08	£660.08	£27,313.68
9	Nottingham	£8.83	£344.37	£14,249.76	£653.42	£27,038.04
10	Sheffield	£8.54	£333.06	£13,781.76	£631.96	£26,150.04
11	Birmingham	£8.51	£331.89	£13,733.40	£629.74	£26,058.24
12	Newcastle	£8.47	£330.33	£13,668.84	£626.78	£25,935.72
13	Glasgow	£8.31	£324.09	£13,410.60	£614.94	£25,445.76
14	Liverpool	£7.19	£280.41	£11,603.16	£532.06	£22,016.28
15	Belfast	£6.29	£245.31	£10,150.80	£465.46	£19,260.36

Global cities:

Of the 120 locations included in the ranking, San Francisco is the most expensive city to rent property outside of London, at £42.81 per square metre.
To afford to rent alone and cover additional living costs in San Francisco, an individual must earn £5,757.21 per month. This equates to £69,086.52 per year.
To afford rent for the minimum space recommended for a family of four in San Francisco, an income of £10,923.93 per month is needed. This equates to £131,087.16 per year.
Of the 120 locations included, Cairo is the cheapest city to rent property, at just £3.05 per square metre.
To afford to rent alone and cover additional living costs in Cairo, an individual must earn £410.17 per month. This equates to £4,922.04 per year.
To afford the rent for the minimum space recommended for a family of four in Cairo, a monthly income of £778.28 is needed. This equates to £9,339.36 per year.

The top 50 results for the global cities list, ranked by the cost of rental per square per metre, are as follows:

	City	Cost Per Sq. Metre	Monthly Rental for a Single Person	Yearly Income Needed to Afford Single Person Rental	Monthly Rental for a Family	Yearly Income Needed for to Afford Family Rental
1	San Francisco, USA	£42.81	£1,669.59	£69,086.52	£3,167.94	£131,087.16
2	New York City, USA	£41.03	£1,600.17	£66,213.96	£3,036.22	£125,636.64
3	Hong Kong, Hong Kong	£33.14	£1,292.46	£53,481.12	£2,452.36	£101,476.92
4	Dubai, UAE	£30.49	£1,189.11	£49,204.56	£2,256.26	£93,362.52
5	Singapore, Singapore	£28.84	£1,124.76	£46,541.76	£2,134.16	£88,310.04
6	Washington D.C., USA	£28.73	£1,120.47	£46,364.28	£2,126.02	£87,973.20
7	Geneva, Switzerland	£26.66	£1,039.74	£43,023.72	£1,972.84	£81,634.80
8	Sydney, Australia	£25.30	£986.70	£40,828.92	£1,872.20	£77,470.32
9	Zurich, Switzerland	£25.19	£982.41	£40,651.44	£1,864.06	£77,133.48
10	Los Angeles, USA	£24.75	£965.25	£39,941.40	£1,831.50	£75,786.24
11	London, UK3	£24.71	£963.69	£39,876.84	£1,828.54	£75,663.72
12	Miami, USA	£24.53	£956.67	£39,586.32	£1,815.22	£75,112.56
13	Chicago, USA	£21.52	£839.28	£34,728.84	£1,592.48	£65,895.72
14	Copenhagen, Denmark	£20.40	£795.60	£32,921.40	£1,509.60	£62,466.24
15	Tokyo, Japan	£20.20	£787.80	£32,598.60	£1,494.80	£61,853.76
16	Vancouver, Canada	£20.00	£780.00	£32,275.92	£1,480.00	£61,241.40
17	Amsterdam, Netherlands	£19.54	£762.06	£31,533.48	£1,445.96	£59,832.84
18	Paris, France	£18.93	£738.27	£30,549.12	£1,400.82	£57,964.92
19	Melbourne, Australia	£18.18	£709.02	£29,338.80	£1,345.32	£55,668.36
20	Oslo, Norway	£17.39	£678.21	£28,063.92	£1,286.86	£53,249.40
21	Reykjavik, Iceland	£17.34	£676.26	£27,983.16	£1,283.16	£53,096.28
22	Stockholm, Sweden	£17.28	£673.92	£27,886.32	£1,278.72	£52,912.56
23	Dublin, Ireland	£16.81	£655.59	£27,127.92	£1,243.94	£51,473.40
24	Seoul, South Korea	£16.36	£638.04	£26,401.68	£1,210.64	£50,095.44
25	Toronto, Canada	£16.32	£636.48	£26,337.12	£1,207.68	£49,972.92
26	Auckland, New Zealand	£16.24	£633.36	£26,208.00	£1,201.76	£49,728.00
27	Brisbane, Australia	£16.12	£628.68	£26,014.32	£1,192.88	£49,360.56
28	Helsinki, Finland	£15.92	£620.88	£25,691.64	£1,178.08	£48,748.08
29	Beijing, China	£15.80	£616.20	£25,497.96	£1,169.20	£48,380.64
30	Perth, Australia	£15.48	£603.72	£24,981.48	£1,145.52	£47,400.84
31	Munich, Germany	£15.26	£595.14	£24,626.52	£1,129.24	£46,727.16
32	Shanghai, China	£15.17	£591.63	£24,481.20	£1,122.58	£46,451.64
33	Milan, Italy	£15.00	£585.00	£24,206.88	£1,110.00	£45,931.08
34	Rome, Italy	£14.54	£567.06	£23,464.56	£1,075.96	£44,522.52
35	Tel Aviv, Israel	£14.51	£565.89	£23,416.08	£1,073.74	£44,430.60
36	Frankfurt am Main, Germany	£13.71	£534.69	£22,125.12	£1,014.54	£41,980.92
37	Edinburgh, UK	£12.85	£501.15	£20,737.20	£950.90	£39,347.64
38	Dusseldorf, Germany	£12.68	£494.52	£20,462.88	£938.32	£38,827.08
39	Madrid, Spain	£12.04	£469.56	£19,430.04	£890.96	£36,867.36
40	Hamburg, Germany	£11.99	£467.61	£19,349.40	£887.26	£36,714.24
41	Vienna, Austria	£11.88	£463.32	£19,171.92	£879.12	£36,377.40
42	Taipei, Taiwan	£11.88	£463.32	£19,171.92	£879.12	£36,377.40
43	Brussels, Belgium	£11.85	£462.15	£19,123.44	£876.90	£36,285.48
44	Moscow, Russia	£11.60	£452.40	£18,720.00	£858.40	£35,520.00
45	Bristol, UK	£11.22	£437.58	£18,106.80	£830.28	£34,356.36
46	Berlin, Germany	£10.81	£421.59	£17,445.12	£799.94	£33,100.92
47	Southampton, UK	£10.68	£416.52	£17,235.36	£790.32	£32,702.88
48	Osaka, Japan	£10.29	£401.31	£16,605.96	£761.46	£31,508.64
49	Jakarta, Indonesia	£10.28	£400.92	£16,589.76	£760.72	£31,478.04
50	Barcelona, Spain	£10.27	£400.53	£16,573.68	£759.98	£31,447.44

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