A third (35%) of Londonders reported that rent now accounts for 60% of their salary, according to research from QuMind.
Three-fifths (61%) of Londoners reported that rent or mortgage payments went up in the past year, with almost a third stating that their payments rose by 40% or more.
More than half (55%) expected these costs to increase further over the year or next.
The impact on finances included having less disposable income (65%) and no savings (56%) by the end of the month.
When asked if they anticipated that their spending would change over the coming six months compared with the first half of 2023, Londoners planned to increase their spending on dining out and takeaways (56%), travel and holidays (53%), TV streaming services (50%) and fashion (47%).
Mark Ursell, CEO of QuMind, said: “Despite the difficult economic situation, it will be encouraging to the retail and hospitality sectors to see that more than half of Londoners plan to increase their spending compared to the first half of this year.
“As we approach the holiday season, they need to get a clear understanding of what consumers actually want to spend their hard-earned cash on and respond with offerings that truly reflect their wants and needs.”
