No matter if you are looking for an entire property to rent or having to be budget conscious and settling for a room in a shared home: London is notoriously expensive.
And, although salaries rarely reflect the cost of living in a capital with almost 10 million people, the 2020 and 2021 pandemic saw rental prices fluctuate when a record number of Londoners switched from busy traffic lanes for calmer areas outside the city – and many more not being able to come to London due to travel restrictions and a series of lockdowns.
With travellers unable to visit the capital and students returning to their parents’ homes, elsewhere, prices of renting a room or property in London even dropped slightly for a short period, with many accommodation owners unable to rent out a property on sites such as Airbnb or renew long-term contracts, as a 2022 study by flatshare site SpareRoom highlighted.
According to the study, which compared data from 2021 with 2020 and 2019, based on over a million UK ads offering a room to let, inclusive of bills, the average room rent in 2021 was £721, compared to £766 in 2019, pre-pandemic. The data also shows the more central areas of London were hit hardest, as people didn’t find the need to live centrally in the middle of a pandemic, and with many mainly working from home.
Another research study, which is newly released by the Office of National Statistics, shows that the relative costs of renting a single room in either a shared property or bedsit, in London, can cost significantly more, depending on where you choose to live. Newham in East London leads as one of the more expensive boroughs with the average room rent at £740pcm – and Barking and Dagenham being the cheapest area to rent in 2022, where the average room is rented for under £600 a month.
For those fortunate enough to be able to rent an entire place – and afford the absurdly expensive utility bills, as gas and electricity costs have increased by an average of 54% in April – where are the most affordable areas to live in London?
“While it might not be the trendiest area, I found that properties in Colliers Wood and Modern to be the most affordable, sometimes 30-40% cheaper than apartments of similar sizes, just a few tube stops away.” – says Jenna Carson, from finance website MoneyLucid. “I lived in the Colliers Wood area for just under 8 months and paid £1050 per month for a beautiful one bed apartment, which was about 6 minutes from the tube. As the area is on the Northern Line too, I could be in Old Street, where I worked last year, within 30 minutes” – recalls Carson, who now lives in the US.
Here are five other areas to consider when renting on a budget in London:
Greenwich surroundings for greener outdoors
“I have lived in London for the last 7 years. During this time, I’ve lived in five different areas of the city, and I highly recommend Mottingham (Zone 4), in the Borough of Bromley and Greenwich. It’s often possible to rent a room in a shared house here for under £600/month, or your own (small) place for around £1,000/month. It’s also quite a leafy area, with several parks, green spaces, and areas of woodland within easy walking distance. The Tube network does not extend into this part of London (apart from the DLR, which serves certain areas in Greenwich and Lewisham). This is probably the main reason that rents are cheaper. However, trains from Mottingham only take 15 minutes to get to London Bridge, and 25 minutes to Charing Cross.”
Alex Tiffany – personal travel planner and the founder of Just Go Exploring
Enfield for the variety of schools
With almost 100 primary schools and 39 secondary schools, Enfield can be a good option for parents looking for an affordable area to rent in London. The region includes Winchmore Hill, Grange Park and Highlands Village, with monthly rent for a one-bedroom flat being approximately £1,150.
Southall for airport proximity
“I have lived in London for 19 years, in an area of Greater London called Southall. Although rental and house prices have gone up significantly during my time in the capital, including in Southall, during that time it has always been one of the cheapest areas of London. To rent a room you will pay an average of £657 per calendar month, while a one-bedroom property has an average rent price of £1203 for the same period. The area is close to Heathrow Airport (25 minutes by car) and has an overground train line, with the average journey time between Southall and Paddington Station (in Central London) being only 17 minutes.”
Brian Vander Waal – Career expert
Croydon for multiple transport links
“Recently my younger brother got a job in central London but, living on his own, he couldn’t afford to live anywhere near the central area. He had to find a place that was cheap to live, and with direct access to London on public transport as he does not drive.
He managed to find a one-bedroom place for £1,200 per month in Croydon, which has overground and national rail services. The stations in Croydon are also easy to get to because the borough has a tram service, so you don’t even have to live in the centre of Croydon to have quick access to London.”
David Bowen – Content Manager at Bordeaux Undiscovered
Sutton for affordable one-bedroom flats
With rail connections from the borough running through to London Victoria, London Bridge, St Pancras and Clapham Junction, Sutton is another recommended area for parents as the borough is one with the highest GCSE attainment rates in London, with over 83% of their students achieving grades 9-4 in English and Maths in 2021. The area has plenty of green spaces, too, and the average rent for a one-bedroom flat starts at £1,160 per month.
Bonus: Havering for low pollution density
Sitting at the far eastern edge of Greater London, Havering is connected to the District line, which crosses London horizontally, and overground. Thanks to a variety of open green spaces, the area has a lower population density than most London boroughs. Average rent for a one-bedroom flat is around £1,150 per month but, if you shop around, you might find compact properties for just under £1,000.