Couples are being priced out of starting a family in Tower Hamlets as they can’t afford to rent a bigger home there, says Property Partner .
Its research shows the average couple already shells out £1,439 to rent a one-bed flat in the borough, which is 33% of their combined salary. That figure leaps to 54% if they want to upgrade to two-bedroom flat or 55% for a three-bedroom house.
That means they would need to find an extra £998 a month for rent if they wanted space to have two or more children.
The borough is the fourth least affordable in the capital when it comes to upgrading your home. Hackney and Southwark also make the top 10 with Newham at 16th and Kensington and Chelsea at the top. It costs 168% of the average combined salary for a three-bedroom house there.
The research used figures from Zoopla and the Office For National Statistics to look at costs of renting in all 33 London boroughs and compared them with the combined average net monthly earnings of a couple working full-time in London which is £4,417.
It showed the most affordable boroughs as Bexley and Havering where couples would need to spend less than 33% of their salaries to rent a three-bedroom house.
CEO of Property Partner Dan Gandesha said: “With London house prices now so high, the ranks of Generation Rent are rapidly expanding. And, as demand for larger rental properties has grown, finding affordable accommodation is increasingly difficult.
“Those unable to buy but hoping to start a family and move up the rental ladder may just be able to make ends meet in outer London boroughs. But the harsh reality is that they’ll be forced to bring up their children in a flat rather than a house.”
He welcomed the £1.4billion for more affordable homes announced by the Chancellor in the Autumn Statement and said it should enable more rental homes to be built.
He said more stock was needed to balance recent tax changes such as cuts to mortgage interest relief from April which could mean buy-to-let investors sell up or increase rents.
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