With the cost of living crisis biting deep, finding affordable rental options is more important in the capital than ever. We take a look at the ten cheapest places to live in London. This is based on average (median) rental prices for 2-bedroom properties across all 32 London boroughs, using the latest statistics available from the London.Gov’s Rental Map at the time of writing (late November 2023).
HomeViews collects thousands of verified resident reviews for new developments across London and UK, and value for money is a key factor in how happy they are with their homes. Read on to discover the London boroughs with the lowest property prices and read reviews of homes in those areas.
London living costs
There are, of course, plenty of factors you’ll need to consider when figuring out what parts of London really offer value for money. Living costs like food prices, transport costs and council tax rates will have a big effect on how affordable certain areas are.
However, the following list will give you a good idea of where to look to find the cheapest places you can live in London. We’ll show you the ten cheapest London boroughs, then keep scrolling for links to some of the best value London apartments on HomeViews!
The following list is based on statistics from London.Gov’s London Rental Map. The latest update was in July 2023, with data collected between April 2022 and March 2023.
The 10 cheapest places to live in London
1: Sutton
Average rent: £1,250 pcm
Sutton takes the crown as the cheapest place to live in London for November 2023. While the average monthly rent for a two-bedroom property in Sutton is the same as the next four contenders, Sutton wins out owing to a lower overall average.
Average two-bedroom rents of £1,250 pcm and plenty of green spaces make this a highly attractive area for young parents working in central London. In addition, schools are excellent – Sutton achieves the best GCSE results of all London boroughs – and crime rates are also low. Rail connections from the borough run through to London Victoria, London Bridge, St Pancras and Clapham Junction.
2: Croydon
Average rent: £1,250 pcm
Taking second place by virtue of having a cheaper overall average rent than similarly priced boroughs, it’s Croydon. Massive regeneration has provided this southerly borough with a new lease of life in recent years, but (clearly) rents remain manageable here. Trains from East Croydon station into London Victoria can take as little as 15 minutes, making it a very easy commuter option. As well as the urban area of Croydon, the wider borough includes areas such as Purley, South Norwood, Coulsdon and Norbury.
3: Havering
Average rent: £1,250 pcm
At the latest update, Havering maintains its reputation as a haven for cheap property with an average rent of £1,250 pcm. Havering has a lower population density than most London boroughs, giving it the extra appeal of plenty of open green spaces. Sitting at the far eastern edge of Greater London, Havering is still connected to the District line, Overground and C2C services at Upminster station. Romford, Gidea Park and Harold Wood stations will also benefit from increased services once Crossrail fully opens.
4: Barking & Dagenham
Average rent: £1,250 pcm
Another borough with an average rent of £1,250, Barking and Dagenham comes in at fourth. Lying just to the west of Havering, Barking & Dagenham offers regular services on the Hammersmith & City and District lines, as well as National Rail services into Fenchurch Street. As with many of its neighbouring boroughs, Barking & Dagenham has also benefitted from the completion of the Elizabeth Line, with a shiny new connection at Chadwell Heath station.
5: Bexley
Average rent: £1,250 pcm
Bexley takes fifth place on our list of the cheapest London boroughs, with an average rent of £1,250 pcm. Sitting between Dartford to the east and Greenwich to the west, Bexley offers Londoners good value homes in areas such as Bexleyheath, Sidcup, Erith and Crayford. Transport connections come in the form of rail services on the North Kent, Bexleyheath and Dartford Loop lines. Crossrail is also set to provide a major boost, with a terminal at nearby Abbey Wood station.
6: Hillingdon
Average rent: £1,300 pcm
We head over to the far west now, to the borough of Hillingdon. It’s the second-largest London borough by area, also with an average rent of £1,300 pcm. Heathrow Airport is a major employer in the borough, and the presence of Brunel University also provides a significant boost to the local economy.
7: Redbridge
Average rent: £1,343 pcm
In 7th, Redbridge sits in the northeast corner of Greater London. Ilford is the main municipal centre of the borough, with Wanstead and Woodford being the other key settlements. Currently running as TfL Rail but soon to be renamed as part of the Elizabeth Line, services from Ilford, Seven Kings, Goodmayes and Chadwell Heath stations complement extensive Central line services on the Epping Branch and Hainault Loop.
8: Harrow
Average rent: £1,350 pcm
Harrow offers a solid monthly rental average of £1,350. With great schools and green spaces, Harrow is a good rental prospect for those looking to get a quieter London lifestyle. Despite the rapid rises in rental rates in recent months, Harrow remains affordable.
9: Enfield
Average rent: £1,350 pcm
In penultimate place on our list of London’s cheapest places to live is Enfield. Its low average rent of £1,350 pcm makes it a popular choice for young professionals and families looking for good value for money. Enfield is well served by public transport access as well as good road links to Greater London and beyond. Thanks to its ongoing regeneration efforts, Enfield is also becoming a place of new opportunities and a magnet for private investment.
10: Bromley
Average rent: £1,350 pcm
Bromley also sits in the top ten by offering good value accommodation with an average rent for two-bedroom properties of £1,350 pcm. It’s the largest of all the London boroughs as it sits in the far southeastern corner of Greater London. Bromley has no London Underground stations within its borders but is well served by the Overground, as well as Thameslink, Southeastern and Southern rail services.
Living in london in 2023
Life in London is notoriously expensive. Between April 2022 and March 2023, London had the highest median monthly rent nationwide at £1,500. This is nearly double that of England overall, which was £825. In more real terms, this was £502 higher than the next largest median rent for a region, which was £998, in the South East.
When you consider the average rental rates of Inner London, the picture is even worse. On average, you can expect to pay £1,797 per month to rent in Inner London in 2023. Outer London is slightly more manageable at £1,375 per month.
Wherever you want to live in the capital, expect a hefty monthly outgoing for rented accommodation. The latest figures from PwC indicate that London tenants aged 22 – 29 spend on average 53% of their income on private rents. The usual benchmark for rents to be considered affordable is just 30% of gross annual income. This means that finding the best value homes in London is crucial if you want to be able to live there long-term.
We’re using rental prices as a guide to the cheapest places to live in London. Why? Firstly, because rent is by far the largest expense that you’ll have to budget for when living in London. Secondly, the data available for rental prices is much more consistent and regularly updated than stats around other living costs.
London living costs FAQs
What is affordable rent in London?
What counts as affordable rent in London depends on your personal budgeting, salary and expectations. While the London-wider median rental average is £1500, it’s possible to find significantly cheaper rates if you’re willing to be flexible. For example, decent-sized studios and one-bedroom properties across Outer London and some Inner London boroughs are routinely marketed at around £1,000 per month or less.
How much is the cheapest flat in London?
In 2022, the cheapest flat for sale in London was on offer for just £20,000. It was a very run-down, one-bed apartment in Leyton, East London.
However, despite the bargain basement price, there was a big catch. It only had 12 months left on its 60-year lease agreement. As our guide to freehold vs leasehold explains, renewing a lease can cost tens of thousands of pounds.
How can I live cheaply in London?
Living cheaply in London is not easy, but it can be done. Some basic tips for making savings in the big city include the following:
- Share rent with as many people as you can comfortably live with. This will reduce your biggest single monthly outgoing.
- Reduce your transport/commuting costs by walking or cycling as often as possible. London’s cycling paths and walkways are enjoying lots of investment, so check out any improvements in your area.
- Take advantage of the many excellent cultural and entertainment options that London offers for free. Many of the capital’s best museums, art galleries, parks and historic attractions have free entry policies.
If you want a more comprehensive guide to the costs of living in London, check out our full FAQ.
Great value London homes available to rent
South London (from £870 pcm – click below to see apartments)
East London (from £1,100 pcm – click below to see apartments)
North London (from £1,350 pcm – click below to see apartments)
West London (from £1,300 pcm – click below to see apartments)
Discover more developments that residents consider to be the best value new homes in London, or explore stunning London properties under £500k.
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