Nine types of key worker would fail letting agent affordability checks for the average one-bed home in every London borough, according to analysis by campaign group Generation Rent.
The organisation claims that in seven London boroughs, the average one-bed home demands more rent than the average hairdresser in London earns in a year. Even secondary school teachers – the highest-paid of the 15 key worker occupations analysed – would struggle to afford the average one-bed in eight central London boroughs on their £53,214 salary.
Affordability checks create barrier for essential workers
The analysis uses the standard letting agent requirement that rent should not exceed 40 percent of a tenant’s income. Generation Rent notes that the average London wage is less than 2.5 times the average rent.
Workers including nurses, teachers and transport staff would need to spend more than 40 percent of their income to stay in inner London, pushing most into shared houses or outer boroughs.
This follows Residential Landlord’s coverage showing tenants now spend a record 36 percent of earnings on rent nationally, with London figures significantly higher.
Even in outer boroughs such as Barking and Dagenham and Bexley, where rents are comparatively lower, Generation Rent says affordable rents remain out of reach for many essential workers. Teaching assistants and care workers are particularly affected.
Campaigners call for rent controls
Generation Rent states: “While letting agents are less likely to let you a home if it costs more than 40 percent of your income, a home is considered affordable, permitting a decent quality of life, if it costs 30 percent of your income or less.”
The analysis covers all 32 London boroughs and average London earnings for 15 key worker occupations. The organisation uses the findings to support its calls for rent controls – a policy the government has repeatedly ruled out.
The data adds to evidence that many potential renters are looking to buy where possible, though deposit requirements remain a barrier for most.
Opinion
The affordability data is stark, but the proposed solution of rent controls carries its own risks. Landlords facing capped returns alongside rising costs have two options: sell or let properties deteriorate. Neither helps key workers find decent housing. The real issue is supply – London’s rental stock has been shrinking as landlords exit, and nothing in the Renters’ Rights Act addresses this. Until more homes are built, affordability will remain a problem that price controls cannot fix.
