What percentage of income to spend on rent? First flat

[kelethon]

Trying to advise DD who is going to rent her first apartment with her long term boyfriend. She's going to be doing a masters, whilst he works as a junior doctor. The city they're moving to is cheap.

Her scholarship from uni means she can budget up to £7k on rent, and still have a good lifestyle funded by the rest and money from us (inheritance for that purpose) in case of emergency, her savings.

He will earn about £1800 a month after tax and pension etc.

I was always advised when I was younger, 1/3 for rent and bills, 1/3 savings, and 1/3 for living.

They've seen some stunning, modern high rise apartments for about £900-1200 a month.

Never more than 30% of their income

How are they splitting things? Are they going 50/50?

Your daughter can comfortably afford 7k a year or £580 per month, that figure is also roughly 1/3 of her bf’s wages so if he matches her £580 that gives them a budget of £1160 per month. Now if that amount is supposed to cover bills too (utilities, council tax etc) then they should work out how much that is likely to cost & deduct it from the £1160 which will give them a maximum monthly rent amount.

They've seen some stunning, modern high rise apartments for about £900-1200 a month.

Since they’re just starting out, I’d advise going for a cheaper (yet still decent) place & saving the difference in rent. Fancy schmancy apartments are all well & good but it’s just money down the drain imo, they’d be better off saving money & putting it towards a fancy schmancy place that is actually their own.