Rental affordability calculator

[aputamaye]

What is the standard formula for calculating rental affordability?

Dp and I live in London. He’s an a&e doctor so we have to be close to the hospital as he’s regularly on call. If our combined pre-tax income is 100k and take home is roughly 5,000 a month, what’s a reasonable rental budget? Obviously want to save etc too

I would say 35% max of your net income would be sensible if you want to save and have capacity to enjoy a few of lifes little luxuries. Are you currently renting ?

I think it is advised to be around 33% of net for rental, but that's my memory of probably more than five years ago.

Agencies use a formula often, it’s something like net income of 3 times your annual rent to be able to afford.

So that would be about 1600/1700

I guess it will be decided by how much the flats actually cost, not how much you’d like to spend! £1600-£1800 for a 1-bed and £1800-£2200 for a 2-bed is (sadly!) quite typical these days in zone 2. Plus factor in another £300-£350 for bills.