Moving In Together? How to Find the Right Rental Budget
Renting as a couple is a big step in life. It often means merging lifestyles, sharing financial responsibilities, and making decisions that affect both partners equally. In the UK, where rental prices have climbed significantly over the past decade, setting a realistic rental budget is more important than ever.
Without a clear plan, couples can end up overstretching themselves financially, which may cause unnecessary stress and tension. On the other hand, with the right budgeting strategy, you can enjoy the excitement of moving in together while keeping your finances under control.
Here’s a comprehensive guide to help you find the right rental budget as a couple.
1. Work Out Your Combined Income
The starting point for any rental budget is understanding what’s coming in. Both partners should lay out their regular income clearly, including:
- Salaries (after tax and National Insurance deductions).
- Freelance or side hustle earnings.
- Any benefits, allowances, or pensions.
- Other income such as dividends or rental income from elsewhere.
This transparency helps ensure there are no surprises later. Once you’ve got a total combined income, you’ll be in a better position to calculate what’s affordable.
Why this matters: UK landlords and letting agents often use income multiples to assess affordability. Typically, your combined gross annual income should be at least 2.5 to 3 times the annual rent. For instance, if you’re eyeing a flat that costs £1,500 per month (£18,000 per year), your joint income should ideally be £45,000–£54,000.
2. Apply the 30% Rule
The 30% rule is a widely accepted budgeting principle: spend no more than 30% of your combined monthly income on rent. This keeps your housing costs at a manageable level and allows room for bills, savings, and leisure.
Example: If together you earn £4,200 per month after tax, 30% would be £1,260. That means you can comfortably afford rent around £1,200–£1,300.
Of course, this is a guideline, not a strict rule. In expensive UK cities like London, some couples may need to spend closer to 35–40% of their income on rent, but going much higher can put pressure on your finances.
3. Factor in All Monthly Outgoings
It’s easy to focus solely on the rent, but there are plenty of other costs that need to be factored in:
- Utilities: Gas, electricity, water, broadband, and mobile phones.
- Council Tax: This depends on the property’s valuation band and your local authority. For many couples, this is one of the biggest extra expenses.
- TV Licence: Required if you watch live TV or use BBC iPlayer (£169.50 per year).
- Insurance: Contents insurance (sometimes required by landlords) and possibly renters’ liability insurance.
- Transport Costs: Train fares, petrol, car insurance, parking permits, and maintenance.
- Groceries and Household Goods: Everything from food to cleaning products.
On average, these extras can add £500–£800+ per month to your household budget. By including them early, you’ll avoid being caught out once you’ve moved in.
4. Plan for Upfront Costs
Renting in the UK usually comes with significant upfront expenses:
- Tenancy Deposit: Capped by law at five weeks’ rent if the annual rent is under £50,000. This will usually be held in a government-backed tenancy deposit scheme.
- First Month’s Rent in Advance: Almost always required before you move in.
- Holding Deposit: Often equivalent to one week’s rent to secure the property (deducted from your first payment if you go ahead).
- Moving Costs: Hiring a van, removal company, or buying packing supplies.
- Furniture & Appliances: If the property is unfurnished, you may need to budget for beds, sofas, white goods, and more.
Together, these costs can run into several thousand pounds. Couples should save up ahead of time so they aren’t financially strained in the first month of renting.
5. Be Honest About Lifestyle Priorities
As a couple, you’ll have to balance different wants and needs. For instance:
- One partner may want to be closer to their workplace, while the other prefers more living space.
- You might want modern amenities, while your partner cares more about saving for the future.
- Some couples value vibrant city living, others prefer quiet suburban neighbourhoods.
These decisions all affect your budget.
6. Build in an Emergency Cushion
Financial security is key when renting as a couple. Life doesn’t always go as planned—redundancy, illness, or unexpected bills can happen.
It’s wise to keep an emergency fund of at least three months’ rent and basic expenses. This ensures you won’t immediately fall behind if one of you loses your income.
An emergency cushion also reduces financial stress and gives you both confidence in your renting choices.
7. Understand Your Tenancy Agreement
When working out your budget, consider what’s written in your tenancy agreement. Some agreements may include certain bills, while others place all responsibility on tenants.
Examples:
A “bills included” rental may initially look more expensive, but it can simplify budgeting.
Some landlords may cover service charges in flats, but not always.
If you’re renting a property with shared heating systems, you might not control your own bills.
Knowing exactly what’s included will help you set a more accurate monthly budget.
8. Think About Long-Term Financial Goals
Your rental budget shouldn’t just reflect what you can afford now—it should also align with your future goals as a couple. For example:
- Do you want to start saving for a deposit on a house?
- Are you planning holidays, weddings, or family expenses in the near future?
- Is one of you planning to reduce working hours or return to study?
Choosing a slightly cheaper rental now could free up hundreds of pounds a month, speeding up your path to buying a property or reaching other goals.
9. Use Online Calculators and Tools
There are several UK-based resources that can help couples estimate an affordable rent range:
MoneyHelper UK provides budget planners.
Rightmove and Zoopla offer rent affordability calculators.
Which? Mortgage calculators can show how much rent is affordable relative to income.
Using these tools together can give you a realistic rental figure before you even book viewings.
10. Choose the Right Location for Your Lifestyle
Birmingham offers diverse neighbourhoods with different price points:
City Centre & Jewellery Quarter: Great for young professionals, nightlife, and walkability. Expect higher rents (£1,100–£1,400 for a one-bed).
Edgbaston & Harborne: Popular with professionals and couples, close to the University and Queen Elizabeth Hospital. Rents around £1,000–£1,300 for a two-bed.
Moseley & Kings Heath: Trendy, village feel, with plenty of pubs and cafes. Around £900–£1,200 for a two-bed flat/terrace.
Selly Oak: More affordable, popular with students and young couples. Two-beds around £850–£1,000.
Sutton Coldfield & Solihull: Suburban, family-friendly, higher space for money. Rents £1,200–£1,600+ for houses.
Being clear about lifestyle priorities (city buzz vs suburban calm) will help you set a budget that reflects what you both value.
Final Thoughts
Finding a rental budget when renting as a couple in the UK isn’t just about calculating the rent. It involves looking at your combined finances, factoring in all living and moving costs, and aligning your choices with your long-term goals.
By working through your budget step by step—and keeping communication open—you can find a home that fits both your lifestyle and your financial future.
Moving in together should be exciting, not stressful. So let the best letting agent in Birmingham help you, give us a call on 0121 681 6327.