Planning to rent a house in London? Get ready to be depressed.
TotallyMoney.com has mapped the real minimum wage you need to rent out a one-bedrrom flat in all of London’s 120 postcodes.
As it turns out, Abbey Wood in zone 4 is the only postcode where a minimum-wage earner, working full time on £6.50 an hour, can afford a place of their own.
The figures are based on the hourly wage that an individual must earn working 37.5 hours a week, for a one-bedroom rental, without paying more than 50% of their income.
Here are the key findings:
- Abbey Wood, a South East London area in Zone 4, is the only postcode out of 120 that is affordable on Minimum Wage.
- Meanwhile, the London Living Wage only affords you two out of 120 postcodes: Abbey Wood and Enfield in Zone 6.
- George Osborne’s annual Minimum Wage raise of 3% is only half of that forecast for rent at 6% per year.
- In gentrified areas such as Stratford and the Tower Hamlets’ postcode of E14, you’d need to earn £39,500 and £52,800 a year respectively.
- To live in EC3, London’s most expensive postcode, you would need to work 106 hours a day on Minimum Wage.
Here is what you really need to earn to rent a one-bed in each London postcode: