Why do people overstretch when it comes to renting?

[juntie]

Granted everyone needs a roof over their heads, I'm talking about those who are not struggling at the bread line or to have a home. I live in London where the average wage is a lot higher but also rents are higher too.

Regularly I overhear/get in conversations with people about renting. Some single people or even couples admit to spending 50% of their take home on rent when they could spend 25% and still have something nice. A junior colleague of mine earns 50k, so take home of about 3k a month. She spends £1,500 a month for a room in a brand new air con flat in Zone 1. Another colleague earns 50k and his partner earns the same amount, they spend £3k for a two bed. During the conversation we were having, they both mentioned they found it difficult to have enough money to fund eating out and travelling, let alone save for a deposit.

So I wonder, why do people spend way more than is necessary for rent? Especially those who are earning a decent amount

Is this a joke?

Because that is how they choose to spend their money? Same reason some people spend more than necessary on cars, holidays or food and drink.

I guess market dynamics, particularly in the rental sector, has evaded you? Do you know that rents have skyrocketed and there is a lack of supply? So, even if your friends wanted to spend less, they may not have been able to for a decent flat. The other thing is choice - they choose to spend more to get a certain lifestyle, live in a certain area. Moving further out isn’t necessarily cheaper when you factor in travel costs.

My thought too.

Because they need somewhere to live and there is competition for every let.

If I wanted to rent a one bed flat near me it would be 50% of my wages. What else am I supposed to do?

Spectacularly silly post if it's genuine.

Assuming it is, a big factor for London and other cities is commuting time and cost. They might save themselves 200 quid a month in rent but that's not much if it's mostly swallowed up on travel and all that time sitting on a train.

£1500 on a whole room. When they could save money by renting a cupboard instead?

How utterly profligate.

My DD spends more than half her (student) income on renting a single room in a shared house in zone 3. £750 a month. She has No Other Choice.

Exactly the same reason why some people buy an adequate, affordable (well not anymore!) First home and then pay off their mortgage and stay put. Whilst others continue to stretch themselves by buying bigger and better properties.
It's choice. Although with the rental market at the moment I'm not so sure it is. Its not unreasonable for people to want more than a one bedroomed property especially if they have children so they have no choice but to stretch

Have you any idea about current affairs, OP? Spectacularly clueless.

because in most cases there aren't enough rentals to go round and you're left to compete over what is available, which is usually overpriced and you're competing with other people for the same property. I'm sure if there was cheaper property available people would go for it!

Because it’s preferable to still living at home with mummy and daddy in your childhood bedroom. At least they’ve got out & are living their lives.

@Pootles34

"Because that is how they choose to spend their money? Same reason some people spend more than necessary on cars, holidays or food and drink."

In most cases this is completely wrong. It's due to lack of available property within people's budgets, competition for few properties that are available. People in many or most cases have no choice but to pay over the odds for a rental, they can't afford to buy and even less likely they can with paying over the odds for a crap overpriced rental.

Not at all, I live and rent in the same areas as these people. You can get a flat share for £1,000 a month easily.

My post is not about people who unfortunately have no choice but to spend over 50% of their income on rent. I am talking about people who could spend £1,000 a month but choose to spend £1,500 a month

Hmmmm - now let me think about that, it is a tough question.🤔

A lot of people do not want a flat share. And a lot of ‘cheaper’ places in London are really not nice.

Have you ANY idea of London rental costs? £1500 for a room... Where do you think they should live instead? Rent costs are INSANE and going up. Properties are going for bids above the asking price.

If I were in a position where I had to rent in a high cost area, which is a large proportion of the country right now, not sure if you're aware of this?
I would absolutely spend more than I needed to if it meant I could rent a property alone rather than have to live in a shared house or flat.
Just because you're happy to why do you assume that everyone else is?

I agree with you - it's people who choose to pay more that push up the rental prices as landlords know that there will always be someone willing to pay, if these people went for £1000 option instead of the £1500 option then the landlord that is letting for £1500 would have no takers so they would have to reduce their rent.

I think it’s a fair question. I’ve been surprised at the different choices my own dc have made around accommodation. The answer is that some people just prefer to live somewhere nice. Personally I’d rather live somewhere a bit crap and spend money on restaurants etc. but it’s personal choice.

My son's trying to find a flat to rent with his girlfriend. Apparently they go to the highest bidder, just like buying a house, which is insane! Fixed rent price doesn't seem to apply in this market.

They've missed out on loads of flats that way and have given up for now.

So yes, I can see how you'd end up spending a lot more out of sheer desperation.
That's London btw, don't know if that madness has spread to the rest of the country.

I live in Zone 2/3 borders. The studio flat in the house next door is rented for £900 a month. This studio flat is the same size as DC2's bedroom and has water running down the outside walls when it rains. Until last month, the front door to the house didn't have a lock on it and didn't shut properly. Until last month there was a family of 4 living there. That is what rentals in London can be like.

That is why people pay more.

I really honestly can think of few things I’d like less than a flat share.

Because your choice in London is unsafe, unpleasant, poorly maintained at an extortionate price; or safe, maintained and pleasant at an extremely extortionate price. Welcome to Tory Britain!