London is the second most expensive city in the world for renters, according to new research.
Average rental prices soak up almost half (45%) of average salaries in our capital city meaning we are worse off than renters in Hong Kong (44%), Tokyo (40%) and New York (25%).
We’re only beaten by San Francisco where renters spend an average of 47% of their wages.
The research by Barratt London ranks 20 cities based on percentage of salary needed for a one-bedroom apartment.
The average price in London is £1,250pm, less than New York ($4,225/£2,532) but renters in the American city earn higher wages.
We are also shelling out less than Sydney (AU$2,600/£1,558) but are worse off as our cousins down under spend just 28% of their wages on rent on average..
The research also reveals 62% of Londoners rent a property, meaning only around a third of us own a home.
In contrast in Singapore 91% of people own their own home. Those that do rent are spending 40% of their salary to do so.
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.”
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