The average rent in London is now £2,119 per month after +6.4% growth in the last year. The cheapest average rent is in Bexley (£1,520) and the highest average rent is in Kensington and Chelsea (£3,460) although rental increases are slowing in the most expensive parts of the city.
London is by far the most expensive place to rent a home in the UK with an average rent of £2,119 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 +6.4% versus +16.1% a year ago. This is currently lower than UK-wide growth of +8.3% over the last year.
Average rental prices in London
| Average monthly rent in London (December 2023) | Average monthly rent in London (December 2022) | % change in the last 12 months | £ change in the last 12 months |
|---|---|---|---|
| £2,119 | £1,989 | +6.4% | £130 |
Zoopla Rental Index. Data to December 2023, published February 2024
Average rent by local authority 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.
| London borough | Average monthly rent (December 2023) | % change in the last 12 months | £ change in the last 12 months |
|---|---|---|---|
| Bexley | £1,520 | +11.7% | +£160 |
| Croydon | £1,540 | +9.2% | +£130 |
| Sutton | £1,544 | +11.9% | +£160 |
| Havering | £1,583 | +13.6% | +£190 |
| Bromley | £1,609 | +9.6% | +£140 |
| Enfield | £1,649 | +11.3% | +£170 |
| Hillingdon | £1,656 | +11.9% | +£180 |
| Barking and Dagenham | £1,657 | +13.3% | +£190 |
| Redbridge | £1,720 | +13.0% | +£200 |
| Lewisham | £1,740 | +8.4% | +£130 |
| Harrow | £1,774 | +10.3% | +£170 |
| Waltham Forest | £1,782 | +11.4% | +£180 |
| Kingston upon Thames | £1,801 | +10.1% | +£160 |
| Hounslow | £1,844 | +9.2% | +£160 |
| Greenwich | £1,865 | +9.1% | +£160 |
| Barnet | £1,890 | +9.3% | +£160 |
| Haringey | £1,917 | +9.9% | +£170 |
| Brent | £1,949 | +7.4% | +£130 |
| Ealing | £1,956 | +9.0% | +£160 |
| Merton | £1,976 | +7.7% | +£140 |
| Newham | £1,983 | +7.2% | +£130 |
| Richmond upon Thames | £2,095 | +7.2% | +£140 |
| Lambeth | £2,181 | +5.2% | +£110 |
| Southwark | £2,217 | +5.7% | +£120 |
| Hackney | £2,330 | +6.1% | +£130 |
| Tower Hamlets | £2,331 | +5.% | +£110 |
| Islington | £2,380 | +6.4% | +£140 |
| Wandsworth | £2,383 | +6.7% | +£150 |
| Hammersmith and Fulham | £2,616 | +7.3% | +£180 |
| City of London | £2,629 | +3.4% | +£90 |
| Camden | £2,669 | +6.2% | +£160 |
| City of Westminster | £3,153 | +4.8% | +£140 |
| Kensington and Chelsea | £3,460 | +5.1% | +£170 |
Zoopla Rental Index. Data to December 2023, published 2024
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, we were seeing rent rises of up to +20.9% in Tower Hamlets a year ago where the average rent is £2,331, but these increases have now steadied to +5.0%.
However, the experience of renters in Outer London is a different story, with double-digit rental inflation in many areas. Rents have risen by more than +13% in the last year in more affordable eastern boroughs of Havering, Redbridge and Barking and Dagenham.
These reductions suggest 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.
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%.
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 in these places.
Key takeaways
- London’s average rent is currently £2,119 after +6.4% growth in the last year
- This annual increase is lower than the UK as a whole as London rents have started to reach an affordability ceiling
- The borough of Bexley has the cheapest average rent in London at £1,520 but rents are still rising quickly in these comparatively cheap spots on the outskirts
- Rents are much higher in Inner London boroughs like Kensington and Chelsea, the City of Westminster and Camden but annual increases are lower at around +5%