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 2022 to September 2023.
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.
How much is rent in London?
According to HomeLet, the average rent in London for new tenancies was £2,127 a month. HomeLet also says that rents in London have increased by six per cent in the last 12 months.
But rents can of course vary depending on lots of factors, including the location and number of bedrooms.
Continue reading for average rental prices broken down by property type.
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, Harrow, and Croydon 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.
Highest average rental prices for rooms in London
These are the areas in London with the highest average monthly rent for single rooms in properties.
Location | Monthly cost |
|---|---|
Westminster | £917 |
Kensington and Chelsea | £867 |
Camden | £850 |
Tower Hamlets | £830 |
Haringey | £797 |
Lowest average rental prices for rooms in London
These are the areas in London with the lowest average monthly rent for single rooms properties.
Location | Monthly cost |
|---|---|
Croydon | £535 |
Barking and Dagenham | £542 |
Waltham Forest | £559 |
Barnet | £612 |
Harrow | £621 |
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 | £1,950 |
Tower Hamlets | £1,550 |
Kensington and Chelsea | £1,517 |
Westminster | £1,430 |
Hackney | £1,300 |
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 |
|---|---|
Brent | £875 |
Harrow | £888 |
Hillingdon | £899 |
Bromley | £900 |
Enfield | £950 |
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 |
Westminster | £2,275 |
Kensington and Chelsea | £2,200 |
City of London | £2,058 |
Islington | £1,744 |
Camden | £1,712 |
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 |
Sutton | £975 |
Bexley | £1,000 |
Havering | £1,000 |
Croydon | £1,100 |
Hillingdon | £1,100 |
Barking and Dagenham | £1,100 |
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 Camden 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.
Location | Monthly cost |
|---|---|
Westminster | £3,002 |
City of London | £2,700 |
Camden | £2,383 |
Kensington and Chelsea | £2,290 |
Islington | £2,250 |
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 | £1,257 |
Sutton | £1,275 |
Barking and Dagenham | £1,325 |
Bexley | £1,350 |
Croydon | £1,350 |
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 | £4,377 |
Westminster | £4,225 |
Camden | £3,077 |
Hammersmith and Fulham | £2,947 |
Islington | £2,700 |
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 |
Bexley | £1,500 |
Havering | £1,500 |
Barking and Dagenham | £1,550 |
Hillingdon | £1,600 |
Croydon | £1,625 |
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 buying a property of that size.
Kensington and Chelsea, Westminster, and Hammersmith and Fulham are the three most expensive areas for larger properties.
Bexley, Barking and Dagenham, and Havering 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 four or more bedroom properties
These are the areas in London with the highest average monthly rent for four or more bedroom properties.
Location | Monthly cost |
Kensington and Chelsea | £7,732 |
Westminster | £6,600 |
Camden | £4,295 |
Hammersmith and Fulham | £4,247 |
Islington | £3,800 |
Lowest average rental prices for four or more 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 | £1,540 |
Barking and Dagenham | £1,825 |
Havering | £2,010 |
Hillingdon | £2,100 |
Newham | £2,100 |
London rental markets among busiest in the country
As well as having lower average prices, three London boroughs were among the UK’s 20 busiest rental markets in 2023.
Property website Rightmove analysed rental markets across the UK to find the highest number of tenant enquiries for a single property.
Redbridge came in second with an average of 49 tenant enquiries for each property, up from an average of 11 in 2019.
Waltham Forest came in 10th with 46 and Havering came 15th with 43 (both up from 11 in 2019).
A high number of tenant enquiries improves a landlord’s chance of renting out their property quickly. It also allows them to have a choice of the most suitable tenants.
Which is the best London borough to invest in property? Let us know in the comments below.
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?
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