What is the Average Cost of Renting a Property in London?

Are you looking for ways to beat London's hot rental market? Find out what you need to know about renting property in London including what areas offer good value for money.

What is the Average Cost of Renting a Property in London?

The average annual cost of renting in London is currently 26,316 pounds sterling, which is by far the most expensive rate in the United Kingdom and almost 3,000 pounds a year in monthly expenses. Average rental prices in London have increased by 14.3 percent only compared to last year's rental market data. According to HomeLet, the average rent in London for new leases is 1,832 pounds per month. HomeLet also states that rents in London have fallen by 15.7 percent compared to last year. Are you looking for ways to beat London's hot rental market? The average London household now spends 23,380 pounds a year on rent, which is the highest rate in the United Kingdom.

Plus, nearly 3,000 pounds a year on bills. According to the Hamptons real estate agency, the average renter in London spends about half of their after-tax income on housing. When household bills are taken into account, more than half of the renter's income is spent on basic living expenses, even before considering other essentials such as food or trips to work. Inevitably, these numbers will increase this year as the cost-of-living crisis intensifies and millions of people will face increases in broadband, energy and city tax bills. Research for Homes & Property carried out by the Hamptons revealed that the average rent for a flat in London is 1650 pounds sterling per cm.

However, this figure masks the dramatic variations in London. Tenants who plan to move next year and want to compensate for the reduced cost of living by reducing their housing costs might consider moving to a cheaper area. It's even possible to save hundreds of pounds a year in the same tube area, although tenants may have to make concessions and move from east to west or from north to south London. Other options include moving within the same general area but a more remote area. The low supply of rental housing and the increase in demand as people have returned to the capital to be closer to offices have also caused a fierce bidding war in popular areas, meaning that many tenants have already been forced to move to a new neighborhood where competition is lower. Hackney may be hipsters' favorite hotspot, but their average monthly rents are 2,130 pounds per cm.

A move to Waltham Forest would save an average of 700 pounds per cm. In West London, renting a two-bedroom property in Richmond-upon-Thames would normally cost 1,840 pounds sterling per cm. In Kingston-upon-Thames, that comes down to 1510 pounds per cm, saving 330 pounds per cm without sacrificing green space or riverside walks. The London rental map shows the average monthly private sector rents for different types of housing in London. Search the rental map by entering a location and property type in the box below. The districts of Hackney and Tower Hamlets in East London, both popular with young people, have average rents of 2,119 and 2,069 pounds per month respectively.

Meanwhile, the cheapest place to rent in the capital is Bexley where rent costs an average of 1,326 pounds a month just behind Sutton at 1,366 pounds a month. We've used the average rental rate for two-bedroom properties which was by far the most common type of rent recorded in virtually every county. Which London districts offer the best average rent? Which ones top the affordability lists which are solidly reasonable and which are incredibly steep? The average rent in Kensington and Chelsea is currently £2,600 a month. This is not surprising given that the most expensive street in London is located in this highly sought-after district along with many of the most exclusive homes in the capital. Kingston upon Thames is tied with other districts with 1,350 pounds a month in terms of its average rental rate across the area. It's another historic riverside district with a lot to offer tenants plenty of space but without the high prices of nearby cities like Twickenham or Richmond. Croydon also has an average rental rate in its area of 1250 pounds sterling. It's ideal for those who travel daily and is constantly reinventing itself.

Nowadays Croydon is cool welcoming and artistic unique. We hope that this comprehensive list of the average rent that London's districts usually offer will be useful to you in your search for an ideal rental property. If you want to refine your search within a wider district or area of London be sure to take a look at our guides to specific areas. The average rental value of new leases in London is 1,999 pounds per month. Rents in London have increased by 1.2% since last month. The following graph shows the average rental value in London compared to the average in the United Kingdom. Below the graph you can select the time period you want to be displayed and compare historical average rental value in London with any other region of United Kingdom. The highest average rents for rooms studios and one-bedroom apartments in London are much closer to city center.

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