The cheapest place to live in London in 2021 is Bexley, with an average rent of £1,100.
We take a look at Bexley and the full list of the ten cheapest places to live in London. This is based on average (mean) rental prices for 2-bedroom properties across all 32 London boroughs, using the latest statistics available from the Valuation Office Agency at the time of writing (May 2021).
Living in london
Life in London is notoriously expensive. During the period viewed in the report, London had the highest median monthly rent at £1,435. This is nearly double the median monthly rent for all of England.
However, the beginning of 2021 saw the capital’s average rental rates drop by 12.4% compared to the last quarter of 2020. The pandemic continues to play a huge role in shaping London rental rates. From the year leading up to March 2021, London’s overall rental demand has dropped by a massive 43%.
The latest figures from PwC indicate that London tenants aged 22 – 29 spend on average 53% of their income on private rents. The usual benchmark for rents to be considered affordable is 30% of gross annual income. This means that finding the best value homes in London is crucial if you want to be able to live there.
We’re using rental prices as a guide to the cheapest places to live in London. Why? Firstly, because rent is by far the largest expense that you’ll have to budget for when living in London. Secondly, the data available for rental prices is much more consistent and regularly updated than stats around other living costs.
London living costs
That being said, there are, of course, many more factors you’ll need to consider. Living costs like food prices, transport costs and council tax rates will have a big effect on how affordable certain areas are.
However, the following list will give you a good idea of where to look to find the cheapest places you can live in London. We’ll show you the ten cheapest London boroughs, then keep scrolling for links to some of the best value London apartments on HomeViews!
The ten cheapest places to live in London
Average rent: £1,100 pcm
The cheapest place to live in London is Bexley, with an average rent of £1,100 pcm. Sitting between Dartford to the east and Greenwich to the west, Bexley offers Londoners good value homes in areas such as Bexleyheath, Sidcup, Erith and Crayford. Transport connections come in the form of rail services on the North Kent, Bexleyheath and Dartford Loop lines. Crossrail is also set to provide a major boost, with a terminal at nearby Abbey Wood station.
Average rent: £1,105 pcm
Havering is a very close second on our list of the cheapest London boroughs with an average rent of £1,105 pcm. Havering has a lower population density than most London boroughs, giving it the extra appeal of plenty of open green spaces. Sitting at the far eastern edge of Greater London, Havering is still connected to the District line, Overground and C2C services at Upminster station. Romford, Gidea Park and Harold Wood stations will also benefit from increased services once Crossrail opens.
Average rent: £1,150 pcm
Sutton comes in at third on our list of budget places to live in the capital. Average rent of £1,150 pcm and plenty of green spaces makes this a highly attractive area for young parents working in central London. In addition, schools are excellent – Sutton achieives the best GCSE results of all London boroughs – and crime rates are also low. Rail connections from the borough run through to London Victoria, London Bridge, St Pancras and Clapham Junction.
Average rent: £1,200 pcm
Our fourth cheapest place to live in London is Croydon. Massive regeneration has provided this southerly borough with a new lease of life in recent years, but rents stay low at an average of £1,200 pcm. Trains from East Croydon station into London Victoria can take as little as 15 minutes, making it a very easy commuter option. As well as the urban area of Croydon, the wider borough includes areas such as Purley, South Norwood, Coulsden and Norbury.
5. Barking & Dagenham
Average rent: £1,210 pcm
Just to the west of Havering lies Barking & Dagenham, number five on our list of the cheapest places to live in London. Average rent of £1,210 pcm and regular services on the Hammersmith & City and District lines, as well as National Rail services into Fenchurch Street. As with many of its neighbouring boroughs, Barking & Dagenham will also benefit from the completion of the Elizabeth line, with a connection at Chadwell Heath station.
Average rent: £1,250 pcm
Next in the list is Bromley in the far south eastern corner of Greater London. Still offering good value accommodation with an average rent of £1,250 pcm, Bromley is also the largest of all the London boroughs. Bromley has no London Underground stations within its borders but is well served by the Overground, as well as Thamelink, Southeastern and Southern rail services.
Average rent: £1,275 pcm
Over to the far west now, and the borough of Hillingdon. The second largest by area of all the London boroughs, average rent of £1,275 pcm also makes it one of the cheapest places to live in Greater London. Heathrow Airport is a major employer in the borough, and the presence of Brunel University also provides a significant boost to the local economy.
Average rent: £1,275 pcm
Redbridge sits in the north east corner of Greater London, and offers an average rental price of £1,275 pcm. Ilford is the main municipal centre of the borough, with Wanstead and Woodford being the other key settlements. Currently running as TfL Rail but soon to be renamed as part of the Elizabeth line, services from Ilford, Seven Kings, Goodmayes and Chadwell Heath stations complement extensive Central line services on the Epping Branch and Hainault Loop.
9. Waltham Forest
Average rent: £1,328 pcm
Epping Forest is the main surviving remnant of the original Waltham Forest that gives this borough its name. The eighth cheapest place to live in London, Waltham Forest extends from Chingford in the north down through Walthamstow to Leytonstone in the south. The borough is particularly well served by London Underground services, with Central and Victoria lines running through its south and middle respectively. London Overground services also serve the borough on the Gospel Oak to Barking line.
Average rent: £1,350 pcm
Last on our list of London’s cheapest places to live is Lewisham. The low average rent of £1,350 pcm makes it a popular choice for young professionals and families looking for good value for money. In addition, exceptional transport options, including DLR and rail services from Lewisham, make this a highly appealing
GREAT VALUE LONDON HOMES AVAILABLE TO RENT NOW
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