Where to live for under 30 per cent of your monthly income

Are you part of the 30% club? If you spend more than a third of your earnings on rent or your mortgage, it may be time to relocate…

Studies suggest that you should only be spending 30% or less of your monthly income on rent in order to maintain a good standard of living. Those spending more than this amount are said to be ‘cost burdened’.

Comparethemarket.com have looked into the cost of rent across The UK. This study reveals that many don’t have a choice in this economy, as those who are single and on an average salary would have to spend up to 118% of their salary on mortgage repayments in London.

Top five places to rent

Below we have the top five cities to rent in, followed by two monthly salaries, average rent for that city and finally the percent of income that rent takes up.

1: Derby             £4,250           £494              11.63%
2: Aberdeen     £4,253           £585              13.75%
3: Coventry      £4,166           £631              15.15%
4: Plymouth     £3,400           £523              15.38%
5: Bradford       £2,767          £438               15.83%

The average housing expenses on rent per household.

With the average household in Derby spending just 12% of their monthly income on rent, this is the perfect spot for those who want to save up to buy a place of their own and get their foot on the property ladder. Aberdeen placed second as those residing in this Scottish city only have to set 14% aside each month for their housing expenses. Although the rent in Coventry is higher than the others in the top five spots, the average earnings in this location mean inhabitants spend just half of the recommended limit on rent at 15%.

This study breaks down the best locations in the UK to buy a property based on mortgage repayments. Glasgow ranks the highest, with homeowners here spending just 19% of their joint income on their homes. This is closely followed by Aberdeen (19%), which has a high take-home salary, with the average household earning £4,253 a month.

Where to buy a home

1: Glasgow                             £3,514          £669         19.04%
2: Aberdeen                          £4,253          £811         19.07%
3: Liverpool                           £3,595          £689          19.16%
4: Derby                                  £4,250          £837          19.70%
5: Kingston-upon-Hull     £2,697           £560          20.77%

Single and ready to… Buy a home

This research has revealed just how difficult it is for single people in the UK to buy a place of their own. Taking into consideration the average monthly household income and average monthly mortgage repayment, the most affordable location to settle down is in Aberdeen. Yet, owning a property in this Scottish city would still require single residents to spend a shocking 38% of their salary on mortgage repayments, 8% more than the minimum recommended amount. It is also revealed that owning a home in Brighton or London would require the average singleton to spend over 110% of their income on their mortgage.

When it comes to renting, only two out of the 25 biggest UK cities are affordable for single renters. In Derby, you can expect to spend 23% of your take-home salary on a 1-bed flat. Aberdeen is the only other city just scraping into the 30% club with an average of 28% of a single income being spent on rent. London singletons will likely have to find some housemates to share the rent burden as a 1-bed flat in the capital will take up nearly 85% of the average monthly salary there.