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 £2,142 per month. In 2020, the rent price per square meter was £21,73. 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 £2,142 per month. This is a 10.9% increase from 2021. In 2020, London’s residents paid £21.73 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 £24.23 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:
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 £37,000, many city residents opt to live in shared rooms.
The average rent for a room in London is £796. This is a 13% rise from £703 this time last year.
|Postcode/Neighborhoods||Average rent for a room in Q4 2021|
|E14 (Canary Wharf / Docklands)||£825|
|E1 (Shoreditch / Whitechapel)||£799|
|NW2 (Cricklewood / Dollis Hill)||£706|
|N1 (Angel / Islington / Canonbury)||£885|
|E2 (Bethnal Green)||£797|
|E15 (Stratford / West Ham)||£701|
|E16 (Canning Town / North Woolwich / Docks)||£770|
|SE16 (Bermondsey / Rotherhithe)||£824|
|SE1 (London Bridge / Borough / Waterloo)||£909|
|W12 (Shepherds Bush)||£755|
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 £563 per room.
For the best values, you must head far from the capital. In Bexley and Hillingdon, you will spend an average of £450 and £492 every month, respectively. Wandsworth offers the most affordable options of £463 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 £1,400 in the London city center and £720 in the outskirts areas like Havering and Sutton. For a furnished studio in an expensive area, the average monthly rent is £2,500.
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 £2,090 per month.
One-bedroom flats cost more in posh boroughs. For example, if you live in Southwark, you’ll pay an average of £2,310 for a one-bedroom apartment. However, if you live in areas on the city’s outskirts like Catford and Streatham, you’ll pay £920 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 rent for a two-bedroom flat in London is £2,900 for places like Peckham and £1,600 for cheaper areas such as Marylebone and Croydon.
The average cost of renting a two-bedroom in Kensington and Chelsea is £3,594 per month. In cheaper areas like Enfield and Croydon, you will pay an average of £1,371 and £1,343, respectively.
Average rent in London for a three-bedroom house
To rent a three-bedroom house in London costs an average of £5,180 per month in posh boroughs. In less expensive places, it costs an average of £3,000 per month.
A three-bedroom semi-detached house in Northwood costs £1,675 per month. A terraced three-bedroom house in Ilford costs £2,100 monthly. In Kensington, average prices range between £5,000 and £7,000 per month.
The average monthly rent for a three-bedroom house in outer London is £4,000, and £7,000 in Central London. However, in a less expensive area, the monthly average is about £3,000.
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 £23,380 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 £2,300 per month for a one-bedroom house in Southwark or £400 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 £800 and £620 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 £1,905, the same goes for £921 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 & Chelsea||£3,960|
|City of London||£2,760|
|Hammersmith & Fulham||£2,610|
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 £775 per year. However, the cost of energy has risen to £700 in April 2022 following a new price cap. For internet bills, the average monthly cost per household is £35.
Read more about utilities and electricity bills in the UK.
The annual average electricity bill in London is £707, which comes to £59 per month. Water costs a yearly average of £396.60 or £33.05 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:|
Most London boroughs will exceed the annual average of £700 in 2022, as follows:
- Barnet: A £969 increase from £1,277 to £2,246.
- Brent: £872 increase.
- Croydon: £896 rise from £1,203 to £2,099.
- Harrow: £1,020 increase.
- Lewisham: from £1,054 to £1,816.
- Redbridge: £958 rise from £1,272 to £2,230.
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.