Property professionals at 1newhomes gather the cheapest 5 London boroughs based on the average monthly rents and the available market data.
The average rents are for 2-bedroom London flats across the capital. The numbers are from the Valuation Office Agency or VOA. Read on to find out some insights on living in the capital and the 5 cheapest neighbourhoods.
Outline on living in London
It is little surprise that living in London is extremely expensive. From April 2020 to March 2021, the median monthly rent in London stood at £1,430. It is the highest number across England, almost double the median rent in the country (£730).
However, London rental rates fell by 12.4% at the beginning of this year compared to the fourth quarter (Q4) of 2020. The pandemic still has a significant impact on the rental trends in the capital. The rental demand in London plummeted by 43% from March 2020 to March 2021.
The recent data from PwC reveals young London tenants from 22 to 29 years old spend 54% of their earnings on private rents. The general benchmark for affordable rents is 30% of annual income. Thus finding cheaper London properties is vital for a comfortable living in the capital.
Rental prices are decent indicators for costs of living in London boroughs. Rents represent the largest share of monthly spending and are updated regularly.
Costs of living in London
Generally, it might be enough to earn £2,500 per month or £30,000 per year to live in London. But in this case, people will need to find compromises, such as shared living and minor or zero savings. For comfortable living, earning £52,000 per year is a benchmark to follow.
Such essential spending’s as food and council tax also have their impact on costs of living in the capital. But the following list based on average rents gives a simple outline and guide on discovering the most affordable London areas.
Havering – £1,145 monthly average rent
London Borough of Havering ranked 1st place with the average rent standing at £1,145 per calendar month (pcm). Being the most affordable area, it has a lower population density and lots of spacious greenery.
Sitting in the very East of London, the borough has efficient infrastructure for locals. Upminster station allows many connections, including the District line, while other nearby stations will offer new services once Crossrail fully launches.
Bexley – £1,150 average monthly rent
Bexley in South-East London comes a close second of the most affordable areas. Sitting west of Dartford, it offers locals good value properties in such locations as Bexleyheath or Crayford.
Transport infrastructure in the area allows resident connections on the North Kent, Bexleyheath and Dartford Loop lines. The Crossrail terminal at Abbey Wood station will give a powerful boost to the infrastructure in the area too.
Sutton – £1,150 average monthly rent
The London Borough of Sutton also ranked 2nd place. Affordable rental offers and lots of greenery attract many young families in the area.
There are high-profile educational facilities in Sutton: the borough boasts the top GCSE scores across London. In addition, the neighbourhood has low crime rates. As for the infrastructure, there are rail connections to Central London, St Pancras, and Clapham Junction.
Croydon – £1,200 average monthly rent
Croydon sits in South London. The area ranked 4th place of the most affordable boroughs in London. Recent regeneration enlivens the area, but the rents remain relatively low. As for the new homes, the prices start at around £300k for a 1-bedroom London flat in Croydon.
Locals enjoy the efficient infrastructure in the area. London Victoria is a 15-minute ride away from the East Croydon station, a simple commute option. Apart from Croydon itself, the borough includes such areas as South Norwood and Coulsdon.
Barking and Dagenham – £1,210 average monthly rent
Finally, the 5th place goes to Barking and Dagenham. The North-East London borough has average rental prices standing at £1,210 pcm.
Residents have easy access to Hammersmith & City, District and National Rail lines. The long-awaited Elizabeth Line will boost the infrastructure in Barking & Dagenham and other neighbouring areas.
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