Rental Market of London

Area selected: London

London

Average rent

£1,672

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Rent growth

4.7%

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How much is rent in London?

The average rent in London is £1,672 according to a survey of properties carried out by HMRC's Valuation Office Agency between September 2021 and September 2022. Between the years ending September 2021 and September 2022, average rents in London grew by £75. Compare average rent by area.

London's average rent of £1,672 is £726 higher than the £946 average rent in England. London is the most expensive region (of 9 total) based on average rent price.

The average rent growth rate in London between the years ending September 2021 and September 2022 was 4.7%. If rents continue to grow at this rate, average rents will reach £2,009 by 2025.

The average cost of rent in London varies depending on property type, prices start at £669 for a single room and rise to £2,952 for a house with four or more bedrooms.

Rental data for London is based on a sample that may change over time. Some differences in trends may be due to changes in the sample rather than true changes in the rental market.

London rent price ranges

Within each property type, rent price can vary depending on variables such as property size and condition of fittings. For example, the lower quartile rent for two bed flats in London is £1,300, increasing to £1,800 for the upper quartile rent.

Types of rental property in London

Based on the 59,420 properties surveyed, the most common type of rental property within London is 2 beds, which account for 40.3% of properties. In England, the most common type of property is 2 bed flats, which account for 38.6% of the rental market stock.

The least commonly available type of rental property is Single Rooms, which account for 1.9% of properties. In England, the least common type of property is Studio flats, which account for 2.2% of the rental market stock.

Room: 1,120 rental properties or 1.9%
Studio: 2,770 rental properties or 4.7%
1 bed: 17,200 rental properties or 28.9%
2 bed: 23,950 rental properties or 40.3%
3 bed: 10,320 rental properties or 17.4%
4+ bed: 4,050 rental properties or 6.8%

Average property price

£705,236

London Housing Market

GDP

£ 504 billion

London Economy

Average salary

£57,362

London Salary

Cheapest areas to rent in London

The cheapest rents in London are found in Outer London, where the average cost of rent is £1,444. In the past year, rents have changed by 3.7% in Outer London (compared to 4.7% in London)

Rank	Area	Average Rent	YoY change in average Rent
1	Outer London Metropolitan County	£1,444	3.7%
2	Inner London Metropolitan County	£1,964	6.8%

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Most expensive area to rent in London

The most expensive rents in London are found in Inner London, where the average cost of rent is £1,964. In the past year, rents have changed by 6.8% in Inner London (compared to 4.7% in London)