Essential workers spend up to half their income on rent in London

A flat-share website has urged the Chancellor Rachel Reeves to address the housing crisis as workers in London struggle to afford rent.

SpareRoom findings reveal Londoners earning the National Living Wage would need to work 63 hours per week to spend no more than 30% of their wages on housing costs.

Rents in the capital have risen over the past five years to £995 per month in Q3 2025.

Essential workers are having to spend 40% to 50% of their gross wages on rent

According to the data, a gross salary of at least £39,804 per year is needed to affordably rent an average room in London at £995 per month.

However, many Londoners earn far less than this, with those on the National Living Wage needing to work 63 hours per week to keep housing costs below 30% of their wages.

SpareRoom explains that some essential workers are having to spend 40% to 50% of their gross wages on rent.

For example, a nursery assistant on an average annual salary of £24,420 would spend 49% of their income on rent, while an ambulance driver earning £29,946 would spend 40%.

Government has to do more to help people meet the high cost of living

Matt Hutchinson, director of flatshare site SpareRoom, is calling on the government to offer more support to renters struggling with high rents.

He said: “In her Budget, the Chancellor must address the housing crisis. While the Renters’ Rights Act brings much-needed protections for tenants, it does nothing to tackle the problem of already unaffordable rents. Either the government has to do more to help people meet the high cost of living, or it must look at creative ways to reduce rents quickly. Renters don’t have time to wait for housebuilding targets to be met.

“London can’t function without its essential workers; they’re the lifeblood of the city but, increasingly, they’re being priced out. Renter demand continues to build in suburban and commuter towns like Esher, Twickenham and Aldershot, as people head further afield in search of cheaper rents. But long, expensive commutes are not the answer to the capital’s housing problems, and especially not for lower-paid shift workers who may be working long or antisocial hours.

“This isn’t just a London problem, it’s happening in other urban areas, too. Cities rely on essential workers, as does the economy. This isn’t just an issue for a handful of people, it’s becoming a national epidemic.”

Property118 commercial reality check

London’s rental pressure is a symptom of constrained supply meeting unrelenting demand. Serious landlords who hold their nerve, price correctly and manage gearing with discipline remain in a stronger position than any policy announcement. Noise comes and goes. Numbers tell the real story.

What landlords should do next

Document and audit readiness. Keep portfolio valuations, tenancy schedules and maintenance records fully updated. Clean data speeds refinancing, supports strategic planning and strengthens your negotiating position.

Smart refinancing. Review current debt structures while rates remain volatile. A planned refinancing cycle can protect cash flow and release working capital for future acquisitions.

Selective portfolio shaping. Use performance data rather than emotion. Weaker assets with low yield or high capex demand can be rotated out to consolidate long-term profitability. Maintain a clear view of gearing targets and cash flow resilience.

Advantage through professionalism

Professionals win by modelling, planning and acting early. Discipline beats drama. The landlords who stay structured and commercially minded outperform those reacting to headlines.