Rising rents in London are making it increasingly difficult for workers to live anywhere near their workplaces, according to new research.
Figures from the flatshare platform SpareRoom suggest that someone in the capital earning the National Living Wage of £12.21 per hour would need to work around 63 hours each week just to keep their housing costs within the commonly used affordability measure of 30% of income. This workload is close to holding down almost two full-time jobs.
Even if the National Living Wage rises to £12.70 per hour, as is expected to be announced in the Budget, the situation barely improves. On that rate, the weekly hours required to stay within the 30% threshold only fall to around 60 hours.
Shared accommodation remains the most affordable option for renters, yet the numbers still do not add up for many households. Even those earning the voluntary London Living Wage of £14.80 per hour – which employers are not required to pay – would still need to work around 52 hours per week to cover average room rents.
For thousands of essential workers, the reality is that they are spending far more than 30% of their income on rent. A nursery assistant earning the average London salary of £24,420, for example, spends nearly half of their gross pay just to afford a room.
London rents have surged by 37% over the past five years, reaching an average of £995 per month in the third quarter of 2025. Rents first pushed past £900 in 2022, peaked at £1,015 in late 2023, and are once again nearing the £1,000 mark.
The earnings of many key worker roles simply have not kept pace with these increases. Average salaries for essential roles such as cleaners, care workers, labourers and ambulance drivers mean they are routinely spending between 40% and 49% of their monthly income on rent in inner London – far above accepted affordability standards.
SpareRoom’s director, Matt Hutchinson, argues that the Chancellor must use the upcoming Budget to address the worsening housing crisis. He notes that although the Renters’ Rights Act introduces welcome protections, it does nothing to reduce the current cost of renting. Without more action from Government, renters will continue to struggle under severe financial pressure.
Hutchinson warns that London depends heavily on its essential workers, but high housing costs are pushing many of them out. More people are now choosing to move to cheaper areas such as Twickenham, Esher and Aldershot, despite the long and costly commutes this creates. He stresses that lengthy travel times and expensive fares are not realistic solutions for lower-paid shift workers who often work irregular hours.
He also highlights that the issue is not confined to the capital. Other major UK cities are seeing similar patterns, with essential workers increasingly unable to live close to where they work. As he puts it, this is no longer a problem affecting a small group – it is becoming a nationwide crisis that impacts local economies and essential services across the country.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property