Landlord insight – what’s the average rent in London?

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.

In this article, we take a look at which of the capital’s boroughs have the highest and lowest average monthly rents for:

• single rooms
• studio properties
• one-bedroom properties
• two-bedroom properties
• three-bedroom properties
• properties with four or more bedrooms

The figures are from the Office for National Statistics (ONS), covering October 2023 to September 2024.

You can use this article as a guide and a springboard for doing 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, one-bedroom, and studio properties are often popular with young professionals moving to the capital or deciding to strike out on their own.

Hillingdon, Croydon, 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. City of London, Kensington and Chelsea, and Westminster all place highly for these properties.

When it comes to studios, Wandsworth, Hammersmith and Fulham, and Camden have the highest average rents.

Highest average rental prices for single rooms in London

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

Lowest average rental prices for single rooms in London

These are the areas in London with the lowest average monthly rent for single rooms 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.

Lowest average rental prices for studio properties in London

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

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.

Lowest average rental prices for one-bedroom properties in London

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

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 Barking and Dagenham 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.

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

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.

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.

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.

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.

Average rent in London for properties with four or more bedrooms

Properties with four or more bedrooms 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 buying a property of that size.

Kensington and Chelsea, Westminster, and Islington are the three most expensive areas for larger properties.

Bexley, Havering, and Barking and Dagenham are areas with low average rents that offer more affordable options for landlords and tenants.

Andrei Nekrassov/stock.adobe.com

Highest average rent in London for properties with four or more bedrooms 

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

Lowest average rental prices for properties with four or more bedrooms in London

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

Useful guides for buy-to-let landlords

• The best buy-to-let areas in the UK
• Landlord checklist – what to do before renting out a property
• The ultimate guide to landlord insurance
• Why do I need landlord insurance?