The English capital is one of the UK’s most sought-after places to live, not only because of the abundance of jobs that are available in London but also the city’s buzzing cultural, dining and entertainment scenes. It’s a place that offers so much possibility, no matter what industry you work in or what your recreational interests are.
If you’re thinking about moving to London, this article details everything you need to know about current rental prices across the city, from the most expensive neighbourhoods to the cheapest boroughs. It’s also a useful resource if you’re weighing up the pros and cons of renting vs buying in London and can help to inform your decision.
Average costs of rentals in London
In the first three months in 2023, the average cost of a rental in London was just over £2,500, making it the most expensive place to live in the United Kingdom. Outside of London, the average rents were around £1,200, having risen consistently each quarter since late 2019. Despite London rentals being at a record high, the rate at which they have been rising has slowed in recent months.
The main reason why London rental prices are so high is because there is a shortage in supply and a huge demand. Many people who moved outside of the city to work remotely are starting to return, with pressure from employers bringing them back into the office. For some who stayed in London and began working from home, there is a desire for more space and many people are looking for an extra bedroom to serve as a home office.
At the same time, there has been a reduction in properties available as landlords have sold up in response to rental legislative reforms. Most of these reforms have been designed to protect tenants’ rights and improve living conditions, and have reduced the appeal of investing in real estate in the capital. Other landlords have sold due to a record high in house prices while others have converted their long-term rentals into short-term stays for the lucrative holiday market.
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Rental prices across London’s neighbourhoods
Not all areas of London are as expensive to live in as £2,500 per month and, even in the most affluent neighbourhoods, you can find a studio or one-bedroom flat for less than this. In Kensington and Chelsea, renters can expect to pay around £1,500 for a studio and £2,000 for a one-bedroom rental while Islington, Tower Hamlets and Lambeth are slightly cheaper at £1,350 for a studio and £1,600 for a one-bedroom flat.
For a two-bedroom property in Westminster, renters can expect to pay almost £3,000 a month or just over £4,000 for a three-bedroom house. Camden is slightly more affordable at roughly £2,250 per month for a two-bedroom property and just under £3,000 for an extra bedroom. Prices jump considerably for those wanting a four + bedroom place, with average monthly rents in Westminster, Kensington and Chelsea around £8,000.
At the cheapest end of the spectrum are the outer London boroughs of Bexley, Havering, and Barking and Dagenham where monthly rents are around £700 for a studio and £900 for a one-bedroom flat. The towns of Sutton and Croydon are also relatively affordable, with rental properties listed online at Rentola for similar rates.
In Redbridge, you can get a two-bedroom rental for around £1,300 per month and a three-bedroom for just over £1,500. Waltham Forest is only slightly more expensive at £1,350 for a two-bedroom flat and £1,650 for three. The cheapest place to find a rental property with four or more bedrooms is currently Barking and Dagenham where prices are around £1,650 per month.
Finding a rental in London
Most renters looking for a property in London head directly online, with several rental platforms where you can browse and compare properties. For the largest number of private listings in the UK, head to Rentola where you’ll find everything from studios to rent in London to spacious homes in the surrounding boroughs. It’s a mobile-friendly and easy-to-use website that allows you to search based on location, price and property type, as well as the number of bedrooms you need. Each Rentola listing comes complete with high-quality photos so you can make an informed decision before attending an inspection.
Making an informed decision
Moving to London is a big decision, particularly with the costs of living in the capital so high. It’s for this reason you should do your research first. Figure out whether your salary will be adequate to meet rental payments, grocery costs and other living expenses, and the best neighbourhoods or boroughs to achieve this. By being informed, you can make a better investment decision that will ensure your London move is a sustainable one.
Also Read: Expense Tracking and Budgeting: Managing Costs with Rental Property Calculators
