Rent Prices in London [Average Rent in 2022]

Since buying a house in the UK capital seems out of reach for many people, renting is always the go-to option. That doesn’t mean that renting is cheap, either. Rent prices in London keep soaring high and are always on an upward trend.

In 2022, the average rent price in London has increased by 10,9% from 2021 and is ÂŁ2,142 per month. In 2020, the rent price per square meter was ÂŁ21,73. In Europe, London is the most expensive city for rent. At the same time, the cost of rent per square meter is slightly higher in Paris.

The gap between supply and demand of rental property is vast and continues to expand, with demand being higher. There are twice as many potential renters as owners currently in the market. However, how much you’ll spend each month on rent depends on the area and type of house you desire. The quality of each property also contributes to the amount of rent the owner asks for. 

Average rent and rent increase in London in 2023

The average rent in London will rise in 2023 as tenants grab the limited supply. The demand is 32% higher than last year, and the supply is 55% lower. As the cost of living continues to rise, tenants in London will spend 55% of their salaries on rent. 

The average rent in London in 2022 was ÂŁ2,142 per month. This is a 10.9% increase from 2021. In 2020, London’s residents paid ÂŁ21.73 per square meter on average.

London is one of the most expensive European cities in terms of rent, only Paris beats it with a price of ÂŁ24.23 per square meter in the city center. Oslo and Copenhagen are also on the list of highest rental prices in the region.

The areas of London with the highest average rents are those near the city center. For example, Kensington, the City of London, and Camden. Regions like Dagenham and Barking are in the less expensive postcodes and have the lowest average rents.

The average monthly rent for a one-bedroom apartment in some affordable areas in London is:

EalingÂŁ1,759
GreenwichÂŁ1,674
LewishamÂŁ1,660
SuttonÂŁ1,622
EnfieldÂŁ1,619
HarrowÂŁ1,612
HillingdonÂŁ1,586
BromleyÂŁ1,572
CroydonÂŁ1,526

Average rent in London for a room

Most people prefer renting a room on a larger property, although it’s more expensive. Despite the cost, you share kitchens and bathrooms with other residents.

The number of people living in shared rooms has risen by 400% in ten years. Since the average salary for a regular employee is ÂŁ37,000, many city residents opt to live in shared rooms.

The average rent for a room in London is ÂŁ796. This is a 13% rise from ÂŁ703 this time last year.

Postcode/NeighborhoodsAverage rent for a room in Q4 2021
E14 (Canary Wharf / Docklands)ÂŁ825
E1 (Shoreditch / Whitechapel)ÂŁ799
NW10 (Willesden)ÂŁ723
E3 (Bow)ÂŁ737
NW2 (Cricklewood / Dollis Hill)ÂŁ706
W3 (Acton)ÂŁ746
N1 (Angel / Islington / Canonbury)ÂŁ885
E2 (Bethnal Green)ÂŁ797
SW15 (Putney)ÂŁ713
E15 (Stratford / West Ham)ÂŁ701
SW6 (Fulham)ÂŁ877
SW11 (Battersea)ÂŁ872
E16 (Canning Town / North Woolwich / Docks)ÂŁ770
SE16 (Bermondsey / Rotherhithe)ÂŁ824
SE1 (London Bridge / Borough / Waterloo)ÂŁ909
NW1 (Camden)ÂŁ918
SW16 (Streatham)ÂŁ664
W12 (Shepherds Bush)ÂŁ755
E17 (Walthamstow)ÂŁ645
W5 (Ealing)ÂŁ757
Source: m.spareroom.co.uk

The high rent is more pronounced in the capital’s most expensive boroughs. In W1 and SW1 postcodes, the average rent prices for rooms have risen by 33% and 31%, respectively.

The cheapest postcodes are in the southeast and northeast regions. SouthEast 2(SE2) is the most affordable, with an average monthly rent of ÂŁ563 per room.

For the best values, you must head far from the capital. In Bexley and Hillingdon, you will spend an average of ÂŁ450 and ÂŁ492 every month, respectively. Wandsworth offers the most affordable options of ÂŁ463 on average per month.

Average rent in London for a studio

Studio apartments are in high demand following the vast number of students studying in the capital.

The average rent of a studio is ÂŁ1,400 in the London city center and ÂŁ720 in the outskirts areas like Havering and Sutton. For a furnished studio in an expensive area, the average monthly rent is ÂŁ2,500.

Average rent in London for a one-bedroom flat

The price of a one-bedroom flat in London depends on the location and availability of social amenities. For instance, a one-bedroom flat next to a tube station costs over one located 10 minutes away. 

The average rent for a one-bedroom flat in London is ÂŁ2,090 per month.

One-bedroom flats cost more in posh boroughs. For example, if you live in Southwark, you’ll pay an average of ÂŁ2,310 for a one-bedroom apartment. However, if you live in areas on the city’s outskirts like Catford and Streatham, you’ll pay ÂŁ920 every month on average.

To save on rent, consider living far from social amenities, primarily if you work from home.

Average rent in London for a two-bedroom flat

The average monthly rental price for a two-bedroom apartment is hard to pin down. As families and expats continue to move to the capital in 2022, rent prices keep fluctuating.

The average monthly rent for a two-bedroom flat in London is ÂŁ2,900 for places like Peckham and ÂŁ1,600 for cheaper areas such as Marylebone and Croydon.

The average cost of renting a two-bedroom in Kensington and Chelsea is ÂŁ3,594 per month. In cheaper areas like Enfield and Croydon, you will pay an average of ÂŁ1,371 and ÂŁ1,343, respectively.

Average rent in London for a three-bedroom house

To rent a three-bedroom house in London costs an average of ÂŁ5,180 per month in posh boroughs. In less expensive places, it costs an average of ÂŁ3,000 per month.

A three-bedroom semi-detached house in Northwood costs ÂŁ1,675 per month. A terraced three-bedroom house in Ilford costs ÂŁ2,100 monthly. In Kensington, average prices range between ÂŁ5,000 and ÂŁ7,000 per month.

The average monthly rent for a three-bedroom house in outer London is ÂŁ4,000, and ÂŁ7,000 in Central London. However, in a less expensive area, the monthly average is about ÂŁ3,000.

Is it expensive to rent in London?

London is the fourth most expensive city to rent in the world and the priciest in Europe. The average household in London spends about ÂŁ23,380 annually on rent.

The closer you are to the city center, the more expensive the rent is. It also depends on the type of house you’re living in. You can pay ÂŁ2,300 per month for a one-bedroom house in Southwark or ÂŁ400 in Zone 3 postcode. 

For the past two years, rental houses in London were many because people fled the capital during the pandemic. Now that things have normalized, expats, students, and fresh graduates are moving to the city to seek opportunities.

The demand for rental houses in London drives prices so high. London offers access to job markets because of ‌multinational companies and businesses.

It also provides career opportunities to fresh graduates and those seeking to change jobs. This population increase in the UK capital raises the demand for rental houses. 

The cost of buying a house has skyrocketed, forcing many people to rent. The supply of homes is very low, so people have to scramble for the ‌ones available. This makes rent prices go up, making London an expensive place to live in.

Read about house prices in London.

Location and rent prices in London

Rental prices in London highly depend on the location.

Zone: London has transport zones that stretch out from Central London (Zone 1) to Zone 9. If you cover several zones to where you live, your rent will be lower. Alternatively, those who live within a few zones pay more rent. A room in Zone 1 and Zone 5 costs ÂŁ800 and ÂŁ620 per month, respectively.

Neighborhood: Living in posh neighborhoods like Kensington and Camden means higher rents. However, you’ll pay less rent in areas like Barking and Sutton. While the average monthly rent of a one-bedroom in Islington costs ÂŁ1,905, the same goes for ÂŁ921 in Hillingdon.

Proximity to stations: Rent is higher if you live closer to train or tube stations. Living 10-20 minutes away from these stations could save you about 10% on rent.

This is how much an average household will pay to rent a flat in some famous London boroughs per month:

Kensington & ChelseaÂŁ3,960
WestminsterÂŁ3,870
City of LondonÂŁ2,760
CamdenÂŁ2,620
Hammersmith & FulhamÂŁ2,610
WandsworthÂŁ2,360
Tower HamletsÂŁ2,280
HackneyÂŁ2,130
SouthwarkÂŁ2,080

What is the average utility bill in London?

Utility bills include electricity, water, and gas consumption and prices. Sometimes it comprises essential services like sewer services and garbage collection. In London, it mainly covers water, gas, and electricity.

The average utility bill in London costs ÂŁ775 per year. However, the cost of energy has risen to ÂŁ700 in April 2022 following a new price cap. For internet bills, the average monthly cost per household is ÂŁ35. 

Read more about utilities and electricity bills in the UK.

The annual average electricity bill in London is ÂŁ707, which comes to ÂŁ59 per month. Water costs a yearly average of ÂŁ396.60 or ÂŁ33.05 monthly. However, it depends on the size of the household. This is the average cost of utilities in various house sizes:

One-two bedroom:3-4 bedrooms:
GasÂŁ45ÂŁ75
ElectricityÂŁ50ÂŁ65
WaterÂŁ35 ÂŁ45

Most London boroughs will exceed the annual average of ÂŁ700 in 2022, as follows:

  • Barnet: A ÂŁ969 increase from ÂŁ1,277 to ÂŁ2,246.
  • Brent: ÂŁ872 increase.
  • Croydon: ÂŁ896 rise from ÂŁ1,203 to ÂŁ2,099.
  • Harrow: ÂŁ1,020 increase.
  • Lewisham: from ÂŁ1,054 to ÂŁ1,816.
  • Redbridge: ÂŁ958 rise from ÂŁ1,272 to ÂŁ2,230.

This may or not be due to the Russian & Ukrainian conflict.

Utility prices will vary depending on the provider you choose. For gas and electricity, different providers like EDF Energy and British Gas offer varying deals. With sites like GoCompare, you can compare various providers’ prices.

Water bills for houses in London either have meters or are unmetered. With a metered connection, your bill will include the monthly usage and fixed charges.

For unmetered water bills, the amount you’ll pay depends on the borough you live in and the size of your household. For metered connections, the average water bill is between £20 and £30 per month.

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