A recent study conducted by tenant and landlord services provider, Canopy, sheds light on the growing rental crisis in London. The report reveals that renters in Dagenham dedicate a staggering 47.1% of their monthly net pay towards rent, surpassing the national average of 38%. This places Dagenham as one of the least affordable areas for renters in the city.
With an average monthly rent cost of £1,011, Dagenham ranks third in the list of London’s least affordable places for tenants. Barking follows closely behind, with renters incurring 45.2% of their take-home pay on rent, averaging at £994 per month.
According to Canopy’s findings, Barnet takes the title for the least affordable area to rent in, with tenants spending a staggering 48.73% of their net pay on rent. Enfield and Harrow also make it to the top five least affordable areas for renters in London.
The report, which analyzed nearly 50,000 data points, highlights that the average rent-to-income ratio in London slightly exceeds the UK average at 39.9%. Uxbridge and Bromley, on the other hand, boast rent-to-income ratios that align with the national average, both standing at around 38%.
Perhaps most concerning is the fact that across London, approximately 30% of tenants are burdened with allocating over 50% of their monthly salary towards rent. This puts significant strain on individuals and families, leaving them with limited disposable income for other essential expenses.
The study sheds light on the urgent need for action to address London’s rental crisis. Chris Hutchinson, Canopy’s CEO, underscores the severity of the situation, stating that the burden placed on tenants by exorbitant rental costs is unsustainable and necessitates proactive measures to ensure affordable housing for all.