How much rent can you afford?
Steps for your budget..how much rent you can afford in the UK?
It is always easy for you to know what type of rental property you are looking for: location, space, furniture, decoration, storage, parking, etc. However, finding all of those things within your budget can be bit more difficult. Here we have some tips that will be helpful to let you know what your budget is, and fortunately, this step isn’t all that difficult.
Generally speaking your rent should be somewhere about or below 30% of your annual income. During the research, some people stretch a little bit for this figure, however, for most people, 30% is reasonable range that will allow you meet the other expense, such as living and entertainment expenses, as well as saving for retirement and in case of emergency.
The normal calculation example is shown below. For instance, you earn £ 50,000 annually
30% of £50, 000 = £15,000; £15,000÷12= £1,250
That said, you may have £1,250 per month for rent, however, you should make this calculation with your family budget, which is your actual take-home pay.
However, if you are on a low income, you could get housing benefits to help you pay the rent, how much you get depends on your income and circumstances. Please find more information on: https://www.gov.uk/housing-benefit/overview
Consider the extra expenses and utilities costs
Consequently, you need to deduct the taxes or other bills each month. After you start searching for places, consider what additional costs and expenses will need to be considered into your budget.
Council tax: Apply the council tax and find how much you need to pay and find out more about Council Tax discounts, go to the https://www.gov.uk/apply-council-tax-reduction
Water, Gas and electricity bills: Found out whether you rent is covering these bills. If the bills are in your name you are able to switch provider and probably find a cheap deal.
Nevertheless, this still depends on personal comfort. Perhaps your budget is much more on a discretionary expense, like travel, entertainment or little luxuries, cable TV, gym memberships and anything else. You absolutely should know how much rent you can afford before you rent an apartment. Otherwise, you will be struggling in limit budget. After you calculate your budget and starting to look for a property, please give us a call on 020 7700 0021, Anthea Lettings will offer you the most reasonable rent in London based on your budget.