There are no set-in-law guidelines for how much renters should pay per month in line with their income, but certainly, rental levels have risen in recent years. The government advises that for most people, you should spend no more than 35% of your monthly ‘take-home’ pay (the money you receive into your account after taxes and national insurance contributions) on rent. This figure will be lower if you have other considerable financial responsibilities, such as children.
You’ll find various salary-rent calculators online, but realistically, in signing up for any financial commitment, the decision you make should be reliant on your circumstances. An online calculator can give you a good idea of what should work out for you. Still, it’s no substitution for sitting down and working through your income, your outgoings and your upcoming commitments to understand your affordability levels best. In doing this, it’s best to take into consideration your finances over the last few months. Work out a comfortable amount that would allow you to maintain a lifestyle that you enjoy and ensure that it works with the property you’re moving into. Don’t be tempted to discount unexpected costs that have popped up; life dictates that these things will similarly happen when you’re renting, too, so you need to stay wary of them.
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