“Renters in London are facing a perfect storm of slow wage growth, rising cost of living and expensive housing that’s always in demand,” says Matt Hutchinson, director of SpareRoom. “Although we’ve seen marginal decreases in the capital’s rents over the past year, that doesn’t make living in the city affordable. And, last month, there were 2.58 people searching for every room available.”
According to SpareRoom’s data from January to April this year, the average rent in London has fallen from £996 at the same time last year to £982, representing a one per cent decrease. But, says Hutchinson, “to Londoners struggling to afford the high cost of living in the capital, this won’t feel like a relief.”
“Being strategic about where you focus your search can help,” he adds. “Areas with high supply and lower-than-average rents do exist and knowing where rents are falling can help with negotiations on asking prices.”
Here are 10 London postcodes with above average supply and below average rents, according to SpareRoom’s most recent data.
This east London postcode is London’s most affordable place to rent, according to SpareRoom. The average rent is £775 per month — £207pcm less than the city’s average, which equates to a saving of £2,484 per year.
But beside lower rents, there’s a lot going for the area too. “There are these pockets of beautiful, quiet streets, that you don’t expect in east London,” couple Danielle Kendry and Matt Busher told the Standard after their move to East Ham from Plaistow. “We could see that in the future this area was going to become something quite sought after.”
“East Ham (E6) has always flown a bit under the radar, but it’s got a strong community feel, decent transport links, and good space for the money — something a lot of renters are prioritising at the moment,” agrees Glenn Jacobs, director at Next Home Ltd. “The supply here tends to be higher just because there’s more housing stock, and landlords are keen to keep things moving in a competitive market.”
Plumstead and Woolwich, SE18
No 1 Street, Woolwich
Daniel Lynch
Renters in SE18 can expect to pay an average of £831 per month, which sits at £151pcm less than the London average.
Southeast of the Thames, this rapidly changing area has seen even greater transformation since the Elizabeth Line opened in Woolwich in 2022. One of the largest housing projects is the £1.2 billion redevelopment of the Woolwich Arsenal by Berkeley Group, which will create more than 5,000 new homes. 4,000 have been completed so far.
“We’re not having any trouble renting properties out in Plumstead or Woolwich at the moment,” says Daniel Grimley, director at local estate agent Goodwin Ellis.
“There are, however, a lot of new builds and developments built in the last five years (and still ongoing) in Woolwich, so there’s always lots of apartments available at any given time. These new developments command high rents due to the condition of the properties, and the close proximity to the town centre, Woolwich Arsenal and DLR station, and especially The Elizabeth Line.
“With regards to the other properties, the prices traditionally have always been lower in the SE18 area as it is moving further out of central London. This, however, makes Plumstead and Woolwich very attractive to both white collar and blue collar workers.”
Putney might not strike renters as one of the city’s most affordable locations, but it has seen a price drop of four per cent since last year, bringing room rents down from £911 to £871 per month.
Located on the riverside, this southwest London postcode offers shops, cafes and a bustling high street as well as green space, being surrounded by the green spaces of Putney and Wimbledon Commons.
Stratford and West Ham, E15
Properties in Stratford’s East Village
Daniel Lynch
There are more deals for renters in east London. In E15, the average rent is £916 per month, £66 below the city’s average.
Since hosting the Olympics, Stratford’s former athlete’s village has been converted into apartments, with a range of cafes and restaurants. 33,000 new homes will be built in the area by 2036, with almost 35 per cent of them being affordable.
“Stratford and West Ham (E15) have had a huge amount of development since the Olympics, so there’s naturally more availability,” explains Jacobs. “You’ve got great infrastructure, shopping, green space — and with more new builds coming in, landlords are often pricing things competitively to get tenants in quickly.”
Cricklewood and Dollis Hill, NW2
Moving west, renters in this Zone 3 postcode can expect to pay £917 per month.
This northwest London area is also the site of a huge £8 billion regeneration project, Brent Cross Cricklewood. The new Brent Cross Town at its centre will provide 6,700 homes, 50 retail, food and drink locations and workspaces for over 25,000 people. Brent Cross West station opened at the end of 2023, making it the first new mainline London station in 10 years.
Properties in Willesden Green
Matt Writtle
The average rent in this northwest London postcode is £933 per month.
“You get more for your money here,” Alice Wawrik, founder of By Alice, told the London Standard in 2022. “I also like that feeling of familiarity I get walking down the street; it hasn’t been torn down and turned into something different, it still feels like it did when I was a child.”
Like Cricklewood, Willesden is also earmarked for major new development, including the £500 million College Green scheme, for which plans were submitted last year. This is intended to create 1,600 new homes, a community centre, essential services and 1.3 hectares of green space.
Currently, though, the area attracts people moving in from more expensive parts of north and west London. “There is a demand because Willesden is a great location, it is easy to get in and out of London, and it is also quite reasonable compared to Queen’s Park or Kensal Green,” said Russell Cox, area manager of Daniels estate agents.
Wimbledon, Merton, Colliers Wood: SW19
Wimbledon is the best-known part of this southwest London postcode, but it also includes Merton and Colliers Wood. Renters in SW19 can expect to pay £936 per month.
The area tends to attract people who have been pushed down the Northern Line from more expensive areas like Clapham, Balham and Tooting, but it is becoming increasingly popular with renters. New research from OnTheMarket, for example, shows that Merton was the second-fastest place in London for tenancies to be agreed, at 22 days.
The average price for a room in Acton is £937pcm
Daniel Hambury/Stella Pictures Ltd
Acton has more stations than anywhere else in London, including four Tube stations, two Overground stations and one National Rail. Acton Main Line station is also on the Elizabeth Line.
A room in Acton averages at £937 per month, according to SpareRoom, with above average supply. This, in part, is due to a number of new developments, including the £800 million Acton Gardens, a regeneration of the former South Acton Estate.
There are rental apartments at developments like One West Point and Acton Gardens, as well as built-to-rent projects like UNCLE Acton, which opened last year.
Renters don’t need to travel to the suburbs for more affordable rent, SpareRoom’s data suggests. In Bow, Zone 2, the average rent for a room is £939 per month, putting it £43 under the average. Bow has seen a six per cent drop in rents over the last year, reducing from £997 to £939.
“Bow (E3) has that classic east London charm, with a mix of period properties, converted warehouses and newer developments,” says Jacobs.
“It appeals to a wide range of renters — young professionals, creatives, even families — but rents haven’t shot up quite as much as you’d expect, partly because there’s still a good level of stock turning over regularly.”
Streatham Common
Daniel Lynch
Streatham has long been a favourite for people who have been priced out of nearby Balham, Clapham or Brixton.
For renters, the average price of a room is £939 per month, meaning that the area still represents relatively good value.
Sandwiched between Tooting Commons and Streatham Common, there’s plenty of green space, while Streatham High Road claims to be the longest shopping street in the country.
Across the capital, SpareRoom’s data shows that rents have fallen by one per cent over the last year. East and west London, however, have seen a slightly greater price drop of two per cent.
SW7 (South Kensington and Knightsbridge) is the most expensive postcode in London to rent, with rooms costing an average of £1,632 per month. East Ham, on the other hand, is the cheapest, at £775.
N9 (Lower Edmonton), E12 (Manor Park) and E4 (Chingford) sit behind East Ham as the most affordable boroughs for renting, with average rents at £778, £781 and £785 respectively.
“In London we’re seeing rents flatline, and even marginally decrease. The record spike in demand we saw post pandemic — which pushed average rents above £1,000 per month for the first time in 2023 — has finally subsided,” says Hutchinson.
“The long-term view still shows the capital’s rental market trending upwards. What we never see are sustained decreases taking rents down to affordable levels. And, while there are more people searching for somewhere to live than rooms available, rents will keep heading north.”
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