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London rent prices: which areas have the highest and lowest average prices?

5-minute read

Simply Business Editorial Team

8 July 2022

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Knowing the average rent in London is important for buy-to-let landlords, especially if you’re thinking about buying a property in the capital.

The rent you receive will be offset by your buy-to-let mortgage, if you have one. But understanding rent prices in London also helps you work out potential rental yield, as well as set prices that influence who your property (or properties) will appeal to.

Keep in mind that rent prices can also determine how quickly your property is let.

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How much is rent in London?

According to HomeLet, the average rent in London for new tenancies is £1,832 a month. HomeLet also says that rents in London have decreased by 15.7 per cent compared to last year.

But rents can of course vary depending on lots of factors, including the location and number of bedrooms.

Below we take a look at London rent prices based on the location and number of bedrooms. They’re based on statistics from the Office for National Statistics (ONS), covering April 2021 to March 2022.

You can use this article as a guide and a springboard for conducting your own research into good locations for buy-to-let properties.

For a more detailed map of rent prices, visit london.gov.uk and explore London average rents by postcode.

Average rent in London for rooms, studio and one bedroom properties

Single rooms and one bedroom and studio properties are often popular with young professionals moving to the capital or deciding to strike out on their own.

Low rental prices can often be a boon for these sorts of properties, as they’re likely to appeal to those who are renting by themselves – depending on location, of course.

Hillingdon, Havering and Sutton have some of the lowest average rents in the capital for rooms, studio and one bedroom properties. If you’re looking to appeal to young professionals, properties in those areas with good transport links could be a worthwhile investment.

As you might expect, the highest average rents in London for rooms, studio and one bedroom properties can be found much closer to the centre. Kensington and Chelsea, City of London, and City of Westminster all place highly for these properties.

Highest average rental prices for studio properties in London

These are the areas in London with the highest average monthly rent for studio properties.

Location

Monthly cost

City of London

£1,358

Kensington and Chelsea

£1,300

City of Westminster

£1,213

Tower Hamlets

£1,200

Newham

£1,198

Lowest average rental prices for studio properties in London

These are the areas in London with the lowest average monthly rent for studio properties.

Location

Monthly cost

Barking and Dagenham

£730

Hillingdon

£750

Havering

£760

Redbridge

£780

Sutton

£795

konstantant/stock.adobe.com

Highest average rental prices for one bedroom properties in London

These are the areas in London with the highest average monthly rent for one bedroom properties.

Location

Monthly cost

Kensington and Chelsea

£1,782

City of London

£1,712

City of Westminster

£1,700

Camden

£1,550

Islington

£1,408

Lowest average rental prices for one bedroom properties in London

These are the areas in London with the lowest average monthly rental for one bedroom properties.

Location

Monthly cost

Havering

£925

Bexley

£925

Croydon

£950

Sutton

£950

Hillingdon

£975

Average rent in London for two and three bedroom properties

Two and three bedroom properties have a varied audience. From families to sharers, the type of tenants you’re likely to get in these properties will depend more on other features (such as outdoor space and bedroom size) as well as local amenities.

For these types of properties, Havering and Hillingdon have some of the lowest average rents. Lots of south London boroughs also have low rents for two and three bedroom properties, particularly Croydon and Bexley.

These buy-to-let hotspots have high rental yields as although their average rents are lower, it costs less to buy the property in the first place.

A simple way to calculate rental yield is by taking the yearly rental income and dividing it by the purchase price and costs.

In east London, Upney and Barking have some great rental yields. And across the river to south-west London, Morden and Wallington offer impressive returns for property investors.

At the other end of the spectrum, Kensington and Chelsea and City of London feature again for two and three bedroom properties, as do City of Westminster and Camden.

Highest average rental prices for two bedroom properties in London

These are the areas with the highest average monthly rent prices in London for two bedroom properties.

Location

Monthly cost

Kensington and Chelsea

£2,500

City of London

£2,297

City of Westminster

£2,275

Camden

£2,050

Islington

£1,844

Lowest average rental prices for two bedroom properties in London

These are the areas in London with the lowest average monthly rent for two bedroom properties.

Location

Monthly cost

Havering

£1,150

Sutton

£1,195

Bexley

£1,200

Croydon

£1,250

Hillingdon

£1,250

Highest average rental prices for three bedroom properties in London

These are the areas with the highest average monthly rental in London for three bedroom properties.

Location

Monthly cost

Kensington and Chelsea

£4,008

City of Westminster

£3,400

City of London

£3,150

Camden

£2,750

Hammersmith and Fulham

£2,449

Lowest average rental prices for three bedroom properties in London

These are the areas in London with the lowest average monthly rent for three bedroom properties.

Location

Monthly cost

Havering

£1,400

Bexley

£1,400

Hillingdon

£1,450

Barking and Dagenham

£1,450

Croydon

£1,500

Average rent in London for four or more bedroom properties

Four or more bedroom properties can be trickier to rent, and are often more likely to be occupied by students and sharers than families. If you do rent to multiple sharers (even if your property is smaller than four or five beds) then you may legally be required to have an HMO licence, so speak to the local authority when considering purchasing a property of that size.

The usual suspects featured above also dominate the highest and lowest average monthly rents for four or more bedrooms.

Wandsworth makes the top five for highest average rent, while Waltham Forest and Newham are other areas with low average rents that offer more affordable options for landlords and tenants.

Andrei Nekrassov/stock.adobe.com

Highest average rental prices for four and five bedroom properties in London

These are the areas in London with the highest average monthly rent for four or more bedroom properties.

Location

Monthly cost

Kensington and Chelsea

£6,500

City of Westminster

£4,937

Hammersmith and Fulham

£4,008

Richmond upon Thames

£3,675

Wandsworth

£3,300

Lowest average rental prices for four and five bedroom properties in London

These are the areas in London with the lowest average monthly rent for four or more bedroom properties.

Location

Monthly cost

Havering

£1,750

Hillingdon

£1,950

Croydon

£1,975

Sutton

£1,995

Redbridge

£2,000

Will there be an ‘Elizabeth Line effect’ on London rent prices?

The long-awaited £19 billion Crossrail project finally opened in May 2022 and will be fully operational by May 2023.

The Elizabeth Line, which cuts travel times for commuters, runs services from Reading and Heathrow Airport to Shenfield in Essex and Abbey Wood in south east London, via central London.

Despite the delayed opening of Crossrail, there have been many reports in recent years suggesting that the new railway would boost values for property owners, and rental yields for landlords who own properties near Elizabeth Line stations.

Alex Yeung/stock.adobe.com

So what effect is Crossrail having on the rental market, and is it too late for landlords to capitalise?

According to Rightmove, demand for rental properties in Slough and Burnham has increased by over 40 per cent, while the number of tenants looking for homes in Southall, near Ealing, has more than quadrupled over the last 10 years.

Research by Revolution Brokers has revealed the Crossrail stations that offer landlords the highest average rental yields. Here’s an overview of the top 10:

Crossrail station

Avg property price

Avg monthly rent

Avg yield

Reading

£282,915

£1,196

5.1%

Custom House

£451,439

£1,848

4.9%

Maryland/Stratford

£441,602

£1,772

4.8%

Southall

£389,013

£1,557

4.8%

Canary Wharf

£550,333

£2,062

4.5%

Forest Gate

£474,217

£1,795

4.5%

Whitechapel

£601,966

£2,202

4.4%

Woolwich

£413,360

£1,510

4.4%

Abbey Wood

£380,233

£1,373

4.3%

Manor Park

£452,153

£1,608

4.3%

Source: Revolution Brokers

With more people taking a hybrid approach to working than ever before, these outer London areas will continue to appeal to tenants who are looking for the best of both worlds.

Average rents are lower in these locations, allowing renters to get more for their money. At the same time, the new railway significantly cuts travel times into the capital.


As for landlords looking to invest in these areas, the lower purchase costs and rising average rents could generate healthy returns in locations that look set to become more popular over time.

Do you have a buy-to-let property in London? Let us know in the comments.

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We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

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