The cheapest and most expensive areas in London to rent a home: Statistics

The latest data on rental affordability in London shows that living in a one-bedroom home remains unaffordable for many. According to the findings, Londoners spend an average of 46.4% of their income on rent, compared to 25% in the rest of the UK.

Westminster tops the list as the least affordable borough, where residents pay 75.4% of their earnings on rent. Other costly areas include Kensington and Chelsea, Islington, and Camden, where rents range from 73% to 57% of income.

Meanwhile, Sutton as well as others like Bexley and Havering boast some of the lowest rents anywhere in London. Renters in these areas pay between 32 and 33.2 per cent for homes (photo). In Sutton specifically, which is the cheapest borough to rent one-bed dwellings in terms of income at 32.3 per cent on average spent per month by residents… Add to this their affordability and good transport connections into the heart of London, and these outer boroughs become particularly appealing for anyone seeking an affordable way onto the property ladder in or around greater London.

It brought out the burgeoning gap between different parts of London. Indeed, while those in core boroughs have been wringing their hands as rents soar ever higher the cheaper end of the spectrum is focused on Bexley and Havering - places to settle down without breaking the bank yet still within striking distance of all that is great about town living. It has been sourced from the Office for National Statistics, Private Rental Market Statistics October 2022 to September 2024 and the Annual Survey of Hours and Earnings.

London has some areas that are cheaper on average, but they all remain above the national affordability threshold This reflects the continued failure to secure readily available accommodation in London, a problem that shows no sign of relenting for the capital.

What conclusions follow from these statistics?

1. Westminster,
2. Kensington and Chelsea,
3. Islington,
4. Camden,
5. Tower Hamlets,
6. Hackney.

At the moment, buying and renting real estate in these areas is mainly available only to investors, business owners or employees holding high positions in companies. Over its rich history, London has established itself as a premium real estate market and a guarantor of stability and return on investment.

If you look at all the offers of available properties in Westminster, prices to buy mostly start from £2,000,000. The target audience is usually looking for a long-term investment and a place to live. This is the historic and most famous area of the city. Renting a home here cannot be cheap, at least because of the purchase prices.

Real estate prices in inexpensive neighbourhoods

Thanks to a key rate rise in the UK, paying a mortgage can be even cheaper than renting in some cases. And many people are opting for low-cost housing mortgages. The advantages of new-build homes are obvious. Living in your own home is much more convenient than renting for virtually the same price. Investors, on the other hand, buy houses in inexpensive neighbourhoods to have passive income from renting out 1 or more apartments.

Sutton is a top 1 low-cost borough in London, located in Zone 5. Boroughs include the following areas:

• Bandon Hill,
• Beddington,
• Belmont,
• Benhilton,
• Carshalton,
• Carshalton Beeches,
• Carshalton on the Hill,
• Cheam,
• Hackbridge,
• Little Woodcote,
• North Cheam,
• Rosehill,
• St. Helier,
• South Beddington,
• Sutton,
• Sutton Common,
• Sutton High Street,
• The Wrythe,
• Wallington,
• Woodcote Green,
• Worcester Park.

Other good and inexpensive places to buy a home

As this area is not very developed in terms of real estate and infrastructure, the best advice would be to pay attention to the borough of Croydon. It ranks 5th in terms of cheapness of rent in London. This area is now being built up much more actively than Sutton. You can see offers for new buildings in Croydon in our catalog.

It is also worth looking at other Boroughs that are closer to the center but are also not expensive. For example, Newham is a very popular borough for buying property right now. Areas such as Canning Town, Royal Docks, Stratford, and Upton Park are popular with property buyers. If you look closely, you can find good modern homes at an attractive price.

Hopefully, this article will be helpful to you in choosing your future residence or purchasing your home!