London is by far the most expensive place to rent a home in the UK with an average rent of £2,121 for new lets. Average rents in London are almost double the UK average of £1,220.
However, rental inflation in London has slowed in the last 12 months, now at +4.2% versus +14.8% a year ago. This is lower than UK-wide growth of +7.2% over the last year.
Average rental prices in London
Average monthly rent in London in February 2024 | % change in the last 12 months | £ change in the last 12 months |
|---|---|---|
£2,121 | +4.2% | +£90 |
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Average rent by borough in London
The table sets out the average rent for every local authority in London, starting with the cheapest. It also shows how much rents for new lets have increased in the last 12 months in each location.
Local authority area | Average monthly rent | % change in the last 12 months | £ change in the last 12 months |
Bexley | £1,520 | 10.40% | £140 |
Croydon | £1,541 | 8.70% | £120 |
Sutton | £1,547 | 11.80% | £160 |
Havering | £1,584 | 12.90% | £180 |
Bromley | £1,609 | 8.10% | £120 |
Enfield | £1,649 | 9.40% | £140 |
Hillingdon | £1,656 | 9.50% | £140 |
Barking and Dagenham | £1,657 | 11.30% | £170 |
Redbridge | £1,721 | 11.60% | £180 |
Lewisham | £1,741 | 5.00% | £80 |
Harrow | £1,775 | 9.10% | £150 |
Waltham Forest | £1,783 | 11.00% | £180 |
Kingston upon Thames | £1,801 | 6.80% | £120 |
Hounslow | £1,845 | 6.10% | £110 |
Greenwich | £1,866 | 4.80% | £90 |
Barnet | £1,890 | 7.00% | £120 |
Haringey | £1,919 | 7.90% | £140 |
Brent | £1,948 | 4.70% | £90 |
Ealing | £1,957 | 7.00% | £130 |
Merton | £1,979 | 5.30% | £100 |
Newham | £1,984 | 4.00% | £80 |
Richmond upon Thames | £2,098 | 6.00% | £120 |
Lambeth | £2,182 | 3.60% | £80 |
Southwark | £2,219 | 4.60% | £100 |
Hackney | £2,332 | 4.80% | £110 |
Tower Hamlets | £2,333 | 2.30% | £50 |
Islington | £2,384 | 4.50% | £100 |
Wandsworth | £2,385 | 4.80% | £110 |
Hammersmith and Fulham | £2,619 | 4.30% | £110 |
City of London | £2,625 | 1.50% | £40 |
Camden | £2,672 | 3.80% | £100 |
City of Westminster | £3,155 | 1.30% | £40 |
Kensington and Chelsea | £3,459 | 3.10% | £100 |
Rental growth has slowed the most in Inner London boroughs, which are also commonly the most expensive with average rents sitting well above £2,000 per month. For example, the average rent in Kensington and Chelsea and the City of Westminster exceed £3,000 but growth has stalled to +3.10% and +1.30% respectively.
This slowdown is a response to affordability challenges and lower demand for new lets in the centre of the capital. It suggests landlords are becoming more realistic in pricing their rentals and may be taking cost-of-living struggles into consideration when setting new rates, which tend to be exacerbated for those in the rental market.
However, the experience of renters in Outer London is a different story, with ongoing double-digit rental inflation in several areas. The rises stretch to +12.9% in Havering, where the average annual rental bill is now £2,160 more expensive than a year ago.
Rents have also risen by more than +11% in the last year in more affordable boroughs of Sutton, Redbridge, Barking and Dagenham, and Waltham Forest.
The chart shows how rents have risen in London boroughs over the last year, highlighting the difference between inner and outer boroughs.
What’s next for the London rental market in 2024?
We expect the growth of London rents to slow to around +2% on average in 2024.
It’ll be a reprieve for London renters as they already face the highest rents and lowest affordability of anywhere in the country. The average renting household in London (1.25 people) already spends 40.4% of their earnings on rent compared to a UK average of 28.4%.
Average rent in the UK: February 2024
Demand from London renters will continue to drop as many cannot afford further rent rises amidst other affordability pressures.
London renters will continue to look for lower rental prices in the outer boroughs and nearby commuter towns, which will keep average rents rising more quickly in these places.
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Data to February 2024, published in April 2024.