5 Reasonable Ways of Avoiding the London Rent Trap

Leaving London is not an option. So what do you do when confronted by the Rent Trap- the possibility for decades of earnings to seep away into landlord’s pockets? We all have to rent in our lives, but it shouldn’t be forever and it shouldn’t be so extortionate. None of these are solutions- that is London’s problem– but these are coping mechanisms and ideas to help.

Have a Plan

So you have a reasonably priced flat in a place you like. Maybe you’re actually managing to pay under £700 a month. But what is that costing you per year? Do you still intend to be paying that in five years’ time? Need to discover a new area or move further out to focus on work? Do you want to experience life in Zone 1 for a year in return for spending the next further out?

Consider What You Need

If your place has a dishwasher or a tumble-dryer, you’re probably paying a premium for it. They’re great to have but could be an easy way to shave a few pounds a week that could add up to a significant figure when you find your new place. Maybe you live really central but don’t go out much. By the time you’ve walked to the tube and gone a few stops you have a half hour commute already. What’s the point? Is your collection of random crap meaning you’re looking for space you don’t need? That rack of shoes could be costing you in extra cubic feet, when you could sell them and buy a couple you will actually wear.

Rent Further Out

Yes, being in a great location is a lot of fun. However, your commute again still involves getting to the station and down to a train and then the opposite at the other end. Would a few more stations really make much difference when you can’t change that minimum? Does the extra half an hour in bed just mean an extra hour scrolling social media the night before?

As mentioned in the ‘Rent trap- is it worth it?‘, you do have to go quite far before rent comes down significantly. A lot of the time the rent remains the same while the places just get a bit roomier. It’s worth questioning how much space you actually need and how to cut down things like clothes. Also, notice how cheap rent seems to equate to weaker transport connections like Hackney and Battersea.

Move in Together

Have you read our article on moving in together? It’s a bold step to give up your bachelor/ette freedoms, but the rewards can be profound (and we’re not just talking beer money).

Avoid the Rent Trap with Parents

We didn’t want to say it, but any family connections in London are valuable if they bought their own property thirty years ago. We’re not saying murder them and take the inheritance! But do consider your options of moving back if you are in a rough patch and fearing the rent trap. It’s not ideal- but we all kind of envy friends who have done this and are living rent free for just a few chores and having to fight over the television control. This may seem a backward step, but it’s a fallback.

Alternatively, the wealthier end of the family may be looking into by-to-let, what with the baby-boomer generation doing so well. We all had student friends who had a house bought by Ben’s parents so he had free rent. They all paid monthly rent while Ben was dining on salmon blinis and champagne- or maybe not but you get the idea. It’s a tentative issue, but a little ‘advance inheritance’ could make a big difference towards your property goals. It’s not meritocratic and not everyone can do so, but if you can then make the most of what you can negotiate.

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