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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to ask if its usual to pay 47% of net income for a private rental?

139 replies

lemonade30 · 23/07/2015 20:09

I read this statistic today in my MILs daily mirror and I'm quite willing to believe that its nothing more than propaganda.
It seems like an extortionate percentage when you consider that all bills/groceries/clothing/school meals and trips/holidays/birthdays and Christmas must be paid for by the remaining 53%.

We rent privately and our rental payments are 19.5% of our net income which is manageable.
We'd be living on bread and water if we had to fork out almost half of our income to a landlord. I'm not even employing the slightest element of hyperbole when I say that.

This statistic is supposedly true for those in the 20-39 age bracket, dubbed generation rent by the daily mirror Confused

so over to you.
Are the mirror talking out of their arse or this truly the state of the private rental sector/salary in 2015?

OP posts:
ScrambledEggAndToast · 23/07/2015 21:55

54% of my salary ShockShock Fortunately, I get tax credits/CB/HB to top me up. This takes the percentage down to 40%. Am a single parent

achieve15 · 23/07/2015 21:56

OP not having a go, but now I'm wondering how many people don't take the housing crisis seriously because they don't know how many people are in this position and think the headlines are just tabloid nonsense.

My older sister's first mortgage was a sixth of mine but her rent was probably a third of my last rent. It has taken her years to accept that I just don't have money to see a show with her just because she fancies it. One of the few times I wish I was older Grin

Athenaviolet · 23/07/2015 21:57

Once the new tax credit cuts come in ours will be almost 50% too. Not se either.

achieve15 · 23/07/2015 21:58

Quite what happens when these renters reach retirement, I don't know. Just have to hope for solutions before then but it's not that long and politicians take forever to notice problems.

Original poster
lemonade30 · 23/07/2015 22:01

no its fine achieve. I just honestly didn't realise the extent of the problemSad

we have roughly 1K disposable income. I just worked it out. We have 4 DC and would struggle to maintain our mediocre lifestyle on any less.

I really sympathise with people whose disposable income is eaten up by private rent. its ridiculous and must be so difficult.

everybody in this situation has my utmost respect.

OP posts:
catrin · 23/07/2015 22:07

53% for me. Single parent, not able to claim anything. You are right, it is very difficult to cover the everything else, but there really isn't much choice, so you just do somehow.

cruikshank · 23/07/2015 22:07

It's not even just retirement, achieve, although obviously that's going to be a big hit. A more immediate concern (although obviously not within the timeframe of this current govt so they won't give a shit) is what is going to happen to the families who are only able to pay that rent because of hb/lha/tax credits. Basically, once their kids get to 16 years old, or 18 if they're still in education, they won't be getting those top-ups any more and they are screwed - they won't be able to afford to rent a family home and will instead go into bedsits or shared accommodation - there are people this is already happening to.

cruikshank · 23/07/2015 22:11

So that means, just to be clear, no bedroom for a dc to come back to during university holidays, and as they're under 25 no housing benefit so they can rent privately themselves. Also, if a dc becomes unemployed, again, no place in the parental home where they can go to to tide themselves over until a job comes up, because the parent(s) will only be entitled to as much housing benefit as a single/couple without dependents will get. If your daughter's or son's marriage breaks down and it all goes tits up, well, maybe you can run to a mattress on the floor of your room in an HMO, but that's about as much support as you can give them.

PurpleSwift · 23/07/2015 22:11

ATM it's 40% on JSA. Start a new job soon and it'll be 37%...

Alwayswiththechords · 23/07/2015 22:14

at the moment our rent is about 30-40% of our net income as DH is on 0-hour contracts. I wouldn't mind having my own place, but I would much rather have more security for tenants. such as a cap on agency fees, better control on landlords who don't do essential maintenance, longer notice periods etc.

Artandco · 23/07/2015 22:16

We spend £22,000 a year on rent. That gets us a 1 bed flat in central London. We have 2 children, so 4 of us live here.

MrsToddsShortcut · 23/07/2015 22:20

Without HB and Tax Credits, it's about 90% (I earn around £1100 and rent is £1000 for 2 bed flat in SE for me, DD and DS)

With benefits it's about 55%?

achieve15 · 23/07/2015 22:20

Cruikshank good point.

This is a really good example of how mad things are. A second london pub has been demolished without permission because a developer wants to build flats there. I think there should be a jail sentence for demolishing without permission but staying on topic....when building flats is that profitable, flats that will largely be bought by buy to let landlords, many with foreign money who see it as a good way to invest, something is very very wrong.

achieve15 · 23/07/2015 22:23

Art, you could be loaded if we don't know the percentage?

Just curious, would you or could you move to Zone 2 at least? Such a big difference in prices, even if you took lots of cabs, wouldn't it better financially?

Getthewonderwebout · 23/07/2015 22:29

As a joint renter it was around 30%.

As a single parent with a mortgage it's 63%.

You just have to cut your cloth accordingly. Which is shitty sometimes but I can't dwell on it.

Artandco · 23/07/2015 22:34

Achieve - no, moving out would mean commuting fees and longer childcare fees needed, so basically same or more than now.

LuluJakey1 · 23/07/2015 22:57

The reason there is a housing crisis is all down to Margaret Thatcher and every government since.

She sold off council houses so the government was rid of the responsibility and dressed it up as giving working classes the chance to own property like the middle and upper classes.

She did not build any to replace them, preferring- as is the Tory way- to leave it to housing charities and private landlords to make a profit providing housing for people who can not afford to buy.

The rent for that housing had to be subsidised because it is pushed higher by market forces (the Tories love market forces because they tend to be the landlords themselves so reap the benefits in times like this when demand for property is high)

That meant the housng benefit bill has risen astronomically, but the government would rather pay that money to private landlords and to the CEOs of Housing Associations as profit for the already wealthy rather than invest money in building council housing.

So let's see: Tory government sells off council housing to relieve burden on state of lookng after the most vulnerable. Private landlords and housing associations rake in money for providing housing for those who need it. Government has to pay multi millions in benefits to subsidise social housng rents for many tenants. Private landlords and CEOs of Housing Associations make millions from taxpayers.

It's the same old story. Rob the poor to line the pockets of the Tories.

Who voted for these bastards?

stillgone · 23/07/2015 22:59

Doesn't surprise me. Most of my friends are in private rentals in London and they really don't have much money even though most of them are in good jobs. I'm extremely fortunate to have a council tenancy here - though I went through hell and back to get it, and my friends would still prefer to be in their private rentals than to deal with the urine-scented lift and violent gangs on my estate. But it means my rent is 21% of my income, so I can manage something of a decent life once rent is paid.

Postchildrenpregranny · 23/07/2015 23:01

DD pays £895 a month for one bed flat in SW London That's cheaper than many, as it does not have central heating (electric radiators)

Original poster
lemonade30 · 23/07/2015 23:03

exactly LJ.

and not me. In fact we don't have a tory MP in the whole of Merseyside.

We also don't pay more than 35% of our income on rent. I do wonder if there's a reason for this correlation.

OP posts:
JaceLancs · 23/07/2015 23:04

I have a repayment mortgage which is quite high due to buying out previous partners
Costs approx 50% of my income
I also have debt repayments for same reasons (relationship breakdown) which take another 25%
Life is pretty difficult

allithwaite · 23/07/2015 23:14

Just worked out our mortgage at 14% guess we are the lucky ones not big earners but always owned now early 40's

JeanneDeMontbaston · 23/07/2015 23:24

I pay about 37%, but I would consider this is low - I'm very lucky and share a house with a friend, which means my rent is lower than a lot of my other friends. But we live in an expensive area, and people who pay less pay a lot in travel costs - it quickly gets into the thousands for train tickets, whereas I can walk to work in 20 minutes. That makes a big difference.

I think the biggest issue is surely whether or not you have children - lots of people in that age bracket won't, and will be much better off than people who do.

achieve15 · 23/07/2015 23:35

Art, it's your business of course but I am surprised. If you lived in zone 2 and commuted to zone 1 you would either have bus costs or could walk. Bus is capped at 4.40 a day. Even with extra hours of childcare, you would save loads, same is true if you cabbed to be honest. If you feel what you pay is worth it, great. But don't miss out because you think it will be more expensive.