London is one of the most expensive cities in the UK to rent a home. It is estimated that an average household spends about £23,380, which is the highest in the country. Besides, many households spend over £3,000 in bills each year on top of the rent.
Rental housing in this area is so expensive that it is estimated by a Kensington lettings agency that most people spend about half of their earnings after tax on housing. This means that most people spend over two-thirds of their salaries on housing, commuting, food, and essentials. Many people in the city are using up almost their entire savings for their upkeep now that the cost of living has been gradually increasing. Besides, some market watchers have claimed that rent has gone up with the largest annual rise in 20 years after the economy opened up after the COVID-19 pandemic.
How Much Do You Pay to Rent a Flat in London?
Here is a quick look at average house prices in different boroughs in the city.
Renting a three-bedroom flat in Chelsea and Kensington is quite pricy at about £3,960 a month The second most expensive borough is Westminster, where tenants pay an average of £3,870 a month for rent. The City of London borough is third-priced as it costs about £2,760 a month to rent a flat.
Flats in Camden cost about £2620, while Hammersmith and Fulham cost £2,610 a month to rent. The other expensive area to rent is Wandsworth, where renters pay about £2,360 a month for rent.
On the other hand, it is cheaper in the east London borough. The most expensive of them are Tower Hamlets and Hackney, where the average rent is about £2,280 and £2,130 a month. They are followed by Bexley, where the average rent for a flat is £1,200 a month. Finally, the cheapest borough is Havering, where it would cost you about £1,170. Several other boroughs in the neighbourhood have their rents between £1,200 and £2,000.
The Cost of Renting Spaces for Other House Sizes
Studios
Most young professionals and people that want to start living on their own stay in studio homes and one-bedroom apartments. They are cheaper than your average 3-bedroom flat, but the location also matters a lot. The boroughs of Havering, Hillingdon and Sutton have the lowest average rents in the city for studios.
At £730 a month, Barking and Dagenham are the cheapest, followed by Hillingdon at £750. Havering and Redbridge follow at £760 and £780 a month, respectively.
The City of London, Kensington and Chelsea, Westminster, and Tower of Hamlets are the most expensive boroughs. The average rent in these boroughs is £1,358, £1,300, £1,213 and £1,200, respectively.
Rental Prices for One and Two Bedrooms
Just as in the case with studios, Chelsea and Kesington are the most expensive places to rent a one-bedroom flat in London at £1,782. The City of London follows closely with an average rent of £1,712, while Westminster closes the list at £1,700 a month. Camden and Islington follow closely at £1,550 and £1,408 a month.
However, if you are looking for cheaper properties to rent, check the east side of the city, where most landlords charge less than £1,000 a month for a one-bedroom house. The average price is about £950, with the boroughs of Havering and Bexley having one-bedroom houses to rent at about £925.
On the other hand, renting a two-bedroom house will cost you £2500 in Kensingston and Chelsea. It is a little cheaper in the City of London at £2,297. Westminster is third at £2,275, while Camden closes the most-expensive list at £2,050.
You can look in the boroughs of Hillingdon, Croydon, Bexley, Bexley, Sutton, and Havering for a cheaper two-bedroom house. At £1,150 a month, Havering is the cheapest amongst them, followed by Sutton at £1,195 and Bexley at £1,1200. It will cost you £50 more in Hillingdon and Cryoton.
You will find it hard to rent homes that have over three bedrooms as they are few and far between. Many of them are occupied by sharers and students. If anyone rents to sharers, they may be asked to have an HMO licence. However, the sharers do not need to get a licence to cohabit in the house.
Just like in the lists above, the usual boroughs dominate the most expensive and the cheapest fourth and more bedroom lists. Most of the cheapest locations charge less than £2000 for a four-to-five-bedroom house.
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