London rent prices: which areas have the highest and lowest average prices?
5-minute read
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.
How much is rent in London?
According to HomeLet, the average rent in London for new tenancies was £2,039 a month in June 2023. HomeLet also says that rents in London have increased by 11.2 per cent compared to 2022.
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 January 2022 to December 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 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 | £1,528 |
Kensington and Chelsea | £1,517 |
Tower Hamlets | £1,343 |
Westminster | £1,304 |
Newham | £1,214 |
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 |
|---|---|
Hillingdon | £730 |
Barking and Dagenham | £750 |
Sutton | £775 |
Havering | £785 |
Hounslow | £800 |
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 |
Westminster | £2,097 |
Kensington and Chelsea | £2,015 |
City of London | £1,712 |
Camden | £1,600 |
Islington | £1,500 |
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.
Location | Monthly cost |
Havering | £950 |
Sutton | £950 |
Bexley | £968 |
Croydon | £975 |
Hillingdon | £1,000 |
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, Stratford and Bow have some great rental yields. And across the river to south London, Deptford and Thamesmead offer impressive returns for property investors. Looking west, the Paddington postcode of W2 can be a profitable location for landlords.
At the other end of the spectrum, Kensington and Chelsea and Westminster feature again for two and three bedroom properties, as do Camden and Hammersmith and Fulham.
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 | £2,817 |
Westminster | £2,770 |
City of London | £2,383 |
Camden | £2,150 |
Hammersmith and Fulham | £1,950 |
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 |
|---|---|
Hillingdon | £1,295 |
Bexley | £1,250 |
Croydon | £1,250 |
Havering | £1,225 |
Sutton | £1,200 |
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 | £4,117 |
Westminster | £3,770 |
Camden | £2,800 |
Hammersmith and Fulham | £2,600 |
Hackney | £2,400 |
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 | £1,450 |
Hillingdon | £1,500 |
Bexley | £1,500 |
Croydon | £1,500 |
Barking and Dagenham | £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.
Richmond Upon Thames makes the top five for highest average rent, while Bexley and Havering are other areas with low average rents that offer more affordable options for landlords and tenants.
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 | £6,717 |
Westminster | £5,867 |
Camden | £4,238 |
Hammersmith and Fulham | £3,651 |
Richmond Upon Thames | £3,500 |
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 |
Bexley | £1,740 |
Havering | £1,800 |
Barking and Dagenham | £1,825 |
Hillingdon | £1,950 |
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 is now fully operational.
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.
So what effect is Crossrail having on the rental market, and is it too late for landlords to capitalise?
According to Goodlord, average rents for properties in key Crossrail locations have soared in the past year.
Crossrail | Average monthly rent (April 2023) | Rise since April 2022 (%) |
Hayes and Harlington | £2,656 | 25% |
West Drayton | £1,677 | 21% |
Canary Wharf | £2,352 | 20% |
Forest Gate | £1,796 | 20% |
Acton Mainline | £1,618 | 19% |
With more people taking a hybrid approach to working than ever before, outer London areas like Hayes and West Drayton will continue to appeal to tenants who are looking for the best of both worlds.
Renters can often get more for their money in the suburbs. At the same time, the new railway significantly cuts travel times into the capital.
As for landlords looking to invest in these areas, the relatively lower purchase costs and rising average rents could generate healthy returns in areas that look set to become even more popular over time.
Useful guides for buy-to-let landlords
Do you have a buy-to-let property in London? Let us know in the comments.
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Written by
Conor Shilling
Conor Shilling is a Copywriter at Simply Business with over two years’ experience in the insurance industry. A trained journalist, Conor has worked as a professional writer for 10 years. His previous experience includes writing for several leading online property trade publications. Conor specialises in the buy-to-let market, landlords, and small business finance.
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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