CompaniesOct 16 2014

London most expensive for young renters

Search sponsored by
ByAlexander Jackman

Buy-to-let investors with properties in London are set to benefit from a swathe of first-time renters moving into the capital, the Office for National Statistics has found.

According to the ONS’ data, average total costs for people renting in London were higher than most of the country, ranging from £14,226 in Bexley to £39,113 in Chelsea.

By contrast, a year renting alone in Brighton – the most expensive non-London area – cost £16,873. A year in Teesside, the cheapest location, costs £10,767.

This came as financial information website ThinkMoney revealed that property prices, together with average living costs and bills, means first-time renters are becoming more financially squeezed.

It showed that, for the UK’s 24 largest population centres, a tenant living alone for the first time could on average be shelling out £12,450 a year.

Ian Williams, spokesman for ThinkMoney, said: “It is no surprise that so many young people are voting with their feet and choosing to live at home with their parents.”

Adviser view

Robin Keyte, director of Somerset-based Keyte Chartered Financial Planners, said: “High rental costs are an issue, and if you pay low rent you then have commuting costs – it’s an impossible equation. A lot of people have to fight their way through in the southeast.

“My main worries relate less to the accumulation of assets and more to traps like going overdrawn or accidentally falling into debt. I’d focus on being realistic and compromising, then after that using cash Isas to accumulate savings if working towards a deposit.”


Monthly cost saved (UK average)

Annual cost saved




Council tax (inc. 25% single person discount






Other living costs (inc. utilities)






Source: ThinkMoney