I'm an estate agent - this is how much you need to earn to rent an apartment in Leeds city centre
For many young people across Yorkshire, moving out of the family home is an exciting milestone and the first step towards greater independence.
Often this means finding a home to rent, whether it is a shared house or their own apartment. And when it comes to choosing where to live, Leeds city centre is high on the wish list for many young renters.
We regularly hear from young people who aspire to live in their own apartment, with one of their first questions usually being whether it’s possible and if they can afford it.
Firstly, we nearly always tell them that they can significantly increase their choice of properties simply by sharing with another person. It sounds obvious, but many overlook how much further their money can go when they can split the rent with someone else.
Next, we look at their earnings and what they might be able to afford. Currently, referencing agencies commonly require an individual to have an annual income equivalent to at least 30 times the monthly rent.
With the National Living Wage currently at £12.71 an hour for people aged 21 and over, this equates to an annual salary of approximately £26,000 for someone working full-time. This means they could meet the income requirement for a monthly rent of approximately £866. Two people earning the same salary could therefore afford a property costing around £1,732 per month.
According to our latest figures, the average asking rent for a two-bedroom apartment in the LS2 postcode is £1,312 per calendar month. Based on the 30-times-income requirement, two people sharing would each need to earn £19,680 a year to meet the required income level.
The LS2 postcode covers a large area of Leeds, including sought-after locations such as The Calls and Millennium Square, as well as areas around First Direct Bank Arena, the universities, Quarry Hill and Leeds Playhouse.
Although rents have increased in recent years, Leeds still offers good value for money compared with many other major UK cities, including Manchester, York, Birmingham and Edinburgh.
In Leeds two people on relatively modest salaries can access a good choice of properties in some of the most popular parts of the city.
The average salary in Leeds is around £37,596 per year, which would equate to an affordability threshold of approximately £1,250 a month for an individual, or £2,500 for two people earning this amount. This puts a wide range of city centre apartments within reach.
Even those earning the National Living Wage can often meet the affordability requirements for a high-quality, spacious apartment when sharing with another person.
It is also worth remembering that demand for city centre rental properties tends to come from a young professional population, many of whom work in Leeds city centre.
Build-to-rent developments often command a premium because of the higher levels of amenity and services they offer, while traditional private rented apartments can provide a more straightforward option for tenants looking for a home in the city.
For young people looking to move out of the family home, Leeds city centre can offer a combination of independence, lifestyle and employment opportunities – and sharing with another person makes that lifestyle considerably more affordable.
Tobias Duczenko is managing director at Zenko City Living, based in Leeds.