Rent pressures push essential workers out of the capital

"London can’t function without its essential workers; they’re the lifeblood of the city, but increasingly, they’re being priced out"
- Matt Hutchinson - SpareRoom

Those relied upon to keep London running—nursery and care workers, cleaners, ambulance drivers, and labourers—can no longer rent affordably in the capital.

Analysis by flatshare site SpareRoom shows that Londoners earning the National Living Wage would need to work 63 hours a week to spend no more than 30% of their wages on housing costs. To rent an average room at £995 per month, a gross salary of at least £39,804 per year is required, well above the income of many essential and frontline workers.

If the Government increases the National Living Wage to £12.70 per hour, as reported ahead of the Budget, workers would still need to work 60 hours a week to remain within the 30% affordability guideline.

Shared accommodation remains the cheapest option. Even those earning the higher London Living Wage of £14.80 per hour—which is optional rather than mandatory—would still have to work 52 hours per week to cover rent.

As a result, many low-paid essential workers spend 40% to 50% of their gross wages on rent. For example, a nursery assistant with an average annual salary of £24,420 will spend 49% of income on housing.

London rents have risen 37% over the past five years, reaching £995 per month in Q3 2025. Prices first surpassed £900 in late 2022, peaked at £1,015 in late 2023, and are now approaching £1,000 again. High post-pandemic demand has driven a sustained upward pressure on rents, as shown in the graph below.

The table below highlights average salaries for five essential worker roles in London and the proportion of income spent on renting an average room. In all cases, the share far exceeds the recommended 30% benchmark.

Matt Hutchinson, director of SpareRoom, commented, “In her Budget, the Chancellor must address the housing crisis. While the Renters' Rights Act brings much-needed protections for tenants, it does nothing to tackle the problem of already unaffordable rents. Either the Government has to do more to help people meet the high cost of living, or it must look at creative ways to reduce rents quickly. Renters don’t have time to wait for housebuilding targets to be met.

"London can’t function without its essential workers; they’re the lifeblood of the city, but increasingly, they’re being priced out. Renter demand continues to build in suburban and commuter towns like Esher, Twickenham, and Aldershot, as people head further afield in search of cheaper rents. But long, expensive commutes are not the answer to the capital’s housing problems, especially for lower-paid shift workers who may be working long or antisocial hours."

"This isn’t just a London problem; it’s happening in other urban areas too. Cities rely on essential workers, as does the economy. This isn’t just an issue for a handful of people; it’s becoming a national epidemic.”