Spending £1350 a month on rent for a room (!)

[farcicalfan]

Dd has just finished her masters (she's 24) and is moving to London for the first time. She has a grad job a a big bank and is expecting to be working a lot.

She obviously has her head screwed on but she came to me to ask for help with budgeting. Her take home is going to be around £3,400 a month. She's found a room in a flat about 25 mins walk from her work that she likes. The only problem is that it's £1,350 a month before bills (!)

Granted it's a very nice flat with lots of space and her own bathroom. Has anyone else got dc in banking/law in London as grads? How much do they fork over in rent each month?

That price sounds inline with the market rent for somewhere central with decent space and own bathroom.

Many of my friends are banking grads in the city & that's fairly standard, a lot paying about £1500 before bills. I'd say as long as it's a nice area & not too far out (dont want to be spending it all on transport!) yes it's a lot of money but she will still have £2,050 left at the end of the month. If she spends say £350 on bills, £300 on food & £600 fun money, that still lets her save £800/ month, which is good going for your 20s.
Her salary will also continue to increase, so that can continue to go up.
Well done to her! X

She can get an entire good sized studio for that and use public transport.

Unless it’s the social life she’s looking for with flatmates?

Which area is this? Kensington and Chelsea?

https://www.rightmove.co.uk/properties/146119994#/?channel=RES_LET

This one in Elephant and castle, with great transport links and Borough market a 20min walk away.

Family member was paying £1K a month for a room in a two bed flat just by London Bridge but had to leave when the landlord put the rent up a lot (they'd end up paying £1400). They're now near Liverpool St paying £1100 in a shared two bed flat with bills. Although it's a modern flat, it's small and is above a grotty run of shops on a main road. However they can walk to work in 25 minutes. At the moment they want to stay fairly Central due to the long hours.

They've just started out in a Commercial Law job.

Actually, it seems to be closer to London Bridge!

She will still have 2k left. That's enough to live and to save

She's obviously done really well to secure such a well paid role in her 20s, Op. I think that she could probably find somewhere cheaper but if she likes the place, it's a good choice.

If her take home after tax and pension is £3.5k at 24 - she’ll need a nice place to come back to to relax after the hours she’ll be doing to make that salary. 1.5 is about average now (it’s insane) but it sounds like she’s being sensible especially coming and asking you for advice so I wouldn’t suggest she scrimps on room space:

she can get her own 1 bed flat for that in zone 3. or a room for 800 including bills. London is a wreck.

If the flat is lovely then she will enjoy living there, especially if it’s in a safe area. Advise her to do it for a year and see what she thinks. Also advise her to start saving for her own place!

That's a decent price for Central London but a bit steep for Canary Wharf, where most of the 'big banks' are based.
However, if it's got lots of space, own bathroom and a decent sized kitchen with no more than 2 housemates, IMO it's a good deal. Work being walkable is really handy!

She can get her own flat for a lower price further out but it might work out more expensive with bills and council tax, all on her own. It really depends on the size of the space, amenities and connectivity.

As she's new to London and can afford it nothing wrong with taking this place to start with. She can always move elsewhere later, once she's settled in. A lot of our graduates do similar.

That's insane rent. Where I live u can get a 3 bed house for that price

That's insane rent. Where I live u can get a 3 bed house for that price

But can you get a first job paying £3,400 a month?

I would say she's only 24, she should enjoy living in a good flat in London while she's young and carefree. She's clearly going to be earning well and I'm sure will invest and will be paying into a pension so I'd encourage her to have a couple of fun years not worrying about money-life's for living.

My son has a studio flat and it is £1600 per month.

Can you say roughly what area it's in? If it's safe to walk back at night, I wouldn't discount the convenience of not having to do public transport especially if she'll be expected to do long hours.

DD pays just under 800 in a shared house in Vauxhall. It is possible to live more cheaply in centralish London than you might think, if you don't mind flatmates, and 80s decor

Not a bad deal for your own bathroom, somewhere central enough that she can walk to work in the city in 25 mins. Crazy, but that's what it is. Most central London workers can't afford to live anywhere near their office.
She will save money (and valuable time) on commuting too, so factor that in before advising a cheaper room further out. And if she's made to work crazy banking hours (until after the last tube), a taxi home will be quick and cheap.

The rents high but she’ll be fine with that take home salary. She’ll even be able to save a decent amount.

My DD22 pays £1.1k per month for a one bed flat, but she only brings home £1.9k. I think your DD will be fine OP. Sounds about the right rate in London.

Sounds like serfdom.

Let her crack on
If she has a good job, her salary will go up

She can find something much cheaper in zone 2/3 but this is walking distance

Once she is settled, she may want to move to a cheaper area and commute but she needs to make her own choices

Is she working in the city? She could probably find something a bit closer than 25mins walk for the price. A shared flat at that age is fun, she’ll make a wider friend group, and if she went for somewhere like Shoreditch it would be a 10 min walk and buzzy at night.