Landlord hits the headlines for requiring £72k in income to rent in Ilford



An investor in Ilford in East London has asked that his tenants earn 72,000 per year collectively, in a case that’s being used to highlight how costly renting has become.

The property is a four bed two-bathroom house, which is being rented for £2,400 per month.

The average salary in the region is around £30,000.

Ilford was actually voted the second worst place to live in Britain in 2014 thanks to a high crime rate.

The home description, from real estate agent Abby Homes, says: “The right tenants should have an annual income of 72k or more to pass referencing.

“The house has been recently decorated to a high standard and offers you four large bedrooms with lots of light.

“Downstairs you will find a very large reception room leading onto a fully fitted kitchen with all appliances, the main bathroom is downstairs that has been renovated to a high standard.

“A small conservatory leads onto a quiet and peaceful garden for those days when you want to have a BBQ and relax.”

The news has led to some anger on social media.

One user took to Twitter to say: “#Sunak & his stooge, #Hunt… this is what they have created, a living hell for tenants. How the heck is a tenant ever feasibly going to be on a £72k salary…bonkers. #Sunak & #Hunt have looked after banks at the expense of others & are now fuelling landlord greed!”

Comments 6

  1. What do you expect from the mentaility of some people who use social media and just want to raise the ridiculous to make a point. I just had a look at the agent’s web site and they offer rental property from as low as £750pcm. You could make similar remarks about the price of new cars how expensive some cars are if your budget is a low end Dacia and you compare the price of a top range Maclaren. Perhaps they have been looking at the statistics methodology of a certain housing charity.

  2. Per another article (https://propertyinvestorpost.com/aldermore-unveils-buy-to-let-mortgages/), I quote below…

    ” Aldermore has launched a selection of buy-to-let mortgages, with rates starting at 5.98%.

    The 5.98% rate is for a 2-year discount with a £1,999 fee to 75% LTV for both individuals and limited companies.

    For those wanting a fixed rate, there is a 2-year fix at 6.99% to a 5-year fix at 7.29%, both to 75% LTV with a 1.50% fee. ”

    Please can someone who can do maths better than me tell us all, how much the interest only payment will be for the said property ?

    Add
    – Gas Safety costs
    – Building Insurance
    – 1/5 of EICR costs
    – 1/10 the cost of all smoke and CO alarms fitted in the property
    – 2 inspections per year
    – Cost of management agency
    – Interest on same % for the amount of money landlord has invested to purchase the property
    – General wear & tear ( per some guidance I read furnishings last around 10 years, so 1/10 of all items provided by the landlord – carpets, fridge etc etc )
    – Repair cost for any breakdowns
    – 1/36 of rent – assuming property will stay vacant one month every three years on average

    Please let us know the gross amount of above total, it will help how much the property can be rented out for without making any profit at all monthly (landlord still has to pay tax on income minus relevant allowance and any other incidental costs inline of doing BUSINESS ).

  3. More landlord bashing. What the article fails to mention is what a 4 bedroom 2 bath house in Ilford costs. Quick look at Zoopla indicates that a price of around £650K would be about right. If you were buying this and put down 10% you would have a mortgage of £585K Mortgage provider might lend you 5X combined salary. So to mortgage this place the lender would require that you need to prove a joint income of £117K. This is much more than the implied “greedy” landlord is demanding. The repayments on £585K over 25 years would be around £3,400 a month based on a 5.0% interest rate. With the rent at £2,400 it does not even cover the potential mortgage. Presumably the landlord has either paid for the house or bought long enough ago that their mortgage is such that they can rent the house at such a bargain price with all maintenance included!

    1. My fear is that as a result of government policy forcing up rents, the government will soon be under pressure to introduce draconian rent controls. Which, of course, will lead to an even greater shortage of rented accommodation.

      When will the government realize that landlords provide an essential service and one which they fail to adequately provide?

  4. I guess 2 people earning an average of £30.000 pa DO NOT NEED A 4 bedroom 2 bathroom house so it is all just hype by people on a political rant and wanting to manipulate public opinion. A 1 bedroom flat would suit their needs or perhaps at best a 2 bedroom house. Unless of course they have a load of kids they can’t afford.

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