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Wednesday 08 June 2016 5:05 pm

Londoners are now spending 70 per cent of their income on rent and bills

By: Helen Cahill

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Londoners are now shelling out a staggering 70 per cent of average income on their rent and essential bills, new data shows.

Analysis from Portico London estate agents shows that for three and a half days of a Londoner's working week earns them enough to pay for rent, as well as taxes, housing costs and household bills.

Read more: Nearly half of London households worried about impact of EU referendum

The average Londoner has to wait until 1pm on a Thursday to have paid off these essential costs. After that, they earn a £201 in disposable income to be spent on food or other items, or to be saved.

All day Monday, Londoners are working to pay their income tax and National Insurance.

Read more: Rental supply fell in May as buy to let landlords fled the market

The news comes after it emerged that house building is on the up in the home counties because Londoners are fleeing the expenses of the capital, and that the figures for the "average" house price in London are more than a little misleading.

Rents are set to increase in the capital as well, as the supply of rental properties took a dip in May.

Robert Nichols, managing director of Portico London estate agents, said: "Londoners have to work increasingly later into the week before they start to spend some of their hard-earned money. Working for five hours alone to pay income tax, plus almost two days on rent, clearly shows how private rents in the capital have skyrocketed.

"But while rents are increasing, public transport is also improving significantly, so we're seeing a huge number of tenants move further out to boroughs like Bexley, Barking and Dagenham and Ealing to benefit from affordable rents, a quick commute, and a good sum of disposable income in their pockets at the end of each week."

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