Need help reading this page? Click to activate Recite Me popup.

How much rent can I afford?

How much you want to spend on rent is ultimately up to you. But making sure you can comfortably afford it, is key.

How much should I spend on rent?

It may depend on where you live. The last report from the Office for National Statistics in 2022, states a person on an average income can expect to pay around 26% of their income on private rent – or more in London.

For our calculations, we use 35-45% of your take-home pay as a guide. This means you can see the higher end of the spectrum for rental costs.

How to create a budget for rent

Working out your monthly outgoings can help you understand how much you can afford to pay for rent.
 

Create a monthly budget

When you make your budget, include food, travel, social, subscriptions, savings and bills.

Bills should include;

  • Council tax
  • Utilities like energy and water
  • TV licence
  • Broadband & digital TV services
  • Insurance.

Factor in any changes in costs

Remember that bills aren’t automatically the same when you move. Council tax may increase or decrease, as will energy and transport costs.

You can also ask the landlord or letting agent if they can give you an idea of the costs for bills in your area. They should have an average amount that they can give you.

Take the costs away from your salary, after tax

Take the amount you have budgeted away from your take home pay. The amount you have left will show you how much you could afford to spend on rent.

It’s always a good idea to have some money set aside as savings. So, you may want to consider some ‘slush fund’ money.

It could be savings for a house deposit or for emergencies. Also think about any seasonal costs, such as birthdays, weddings and Christmas.

How you might be able to reduce your rental costs
 

If you’ve worked out a budget and know your top end for spending on rent, you might not be able to live exactly where you imagined.

The following might help when looking for a home to rent using your new budget:

Be flexible

Pick a different location or style of property to help you get more for your money. For example, you may have planned on living in a house, but there could be a nice flat in your price range. Looking a bit further out of the centre of a city or town can sometimes be cheaper.

Live in a shared house

Moving into a shared home can be a simple way to save money on rent and make friends if you’re new to the area. It’s a good idea to visit and speak to your house mates before moving in to make sure you all get along.

Move in a partner or friend

Splitting the cost of rent with a partner or friend can make it a lot cheaper and increase your options. It will also cut down on household bills and other living costs.

How much does renting cost?
 

Rental costs vary depending on where you are looking and the type of property you want to rent.

London is generally higher than in the rest of the country.

Rents can be higher in central city areas, and you may see that flat sharing is more common.

If you live outside of a city and need to commute for work, remember to factor transport costs into your monthly budget. You may find it cheaper to pay more on rent, and less on your transport costs. Do your research before you decide where to rent.

You can use the Rightmove Rental Price Tracker to see the latest rental prices in your area.

Handy to know


When looking for rental properties, you might see the terms PCM or PW in listings, here’s what they mean:

PCM – per calendar month. This is the cost of the property each month. You can usually arrange a day to pay that suits you with the landlord – for example, payday.

PW – per week. This is commonly used for social housing and student housing. The landlord or letting agent should offer the price per week and calendar month, so you know the total amount.

These two terms are helpful to know when renting, so you know how much you’ll be paying and when.

Thinking about a mortgage?

If you are thinking about buying a house instead of renting, our mortgage calculator will give you an idea of how much you could borrow. It’s quick and easy to use. You’ll also see what mortgage rates we have to offer.

It could be a good way to compare monthly rent repayments versus mortgage repayments.

Whether you want to take that first step or plan your next move, your search starts here.

Use our mortgage calculator

You could lose your home if you don’t keep up your mortgage repayments

You might also like

Budget Calculator

With our budget calculator, you might be able to save a little extra each month.

Use our budget calculator

To rent or buy?

There is no easy answer. We can help you see what could work best for you.

Renting or buying

Credit scores and rental

Keeping an eye on your financial health can help make the process easier.

Credit scores and renting

Renting made easy

Whether you’re moving into your own place or moving into a shared rental, our tips and advice will help the next steps be stress free so you can get on with making it yours.

Renting help and support

Renting made easy

Whether you’re moving into your own place or moving into a shared rental, our tips and advice will help the next steps be stress free so you can get on with making it yours.

Renting help and support