Cheapest Places to Live in London in 2023
Searching for the cheapest places to live in London? Look no further! While London is known for its high costs, there are hidden gems where living expenses are more forgiving. There are actually some areas that are more affordable than the average. Let’s explore some of these budget-friendly areas! If keeping costs down is a top priority and you don’t mind a train journey of an hour or more, then be sure to explore these other great cities near London too.
Which part of London is cheapest?
Buying a house in the capital can be daunting, given the high property values. However, areas like Newham, Bexley, and Greenwich offer relatively affordable housing options for potential homeowners. Research and patience can open doors to hidden property gems in the city.
- Barking & Dagenham: is one of the more affordable boroughs in the UK’s capital situated on the eastern outskirts, offering great value for money.
- Bexley: nestled in the south-eastern part of London, with parks and historical sites, making it an appealing choice near the city center.
- Newham: East London’s Newham is known for its diverse community, it’s a great strategic location that is perfect for renters looking for value.
- Croydon: combining urban living with green spaces, Croydon in South London offers a steady lifestyle at a fair cost.
- Havering: Havering has caught the attention of many that are seeking value for their money and a suburban feel.
- Sutton: known for its exceptional schools, Sutton blends suburban charm with easy connectivity to central London – an underrated gem for affordable living.
- Greenwich: offering a mix of cultural vibrancy and tranquillity, Greenwich is a sought-after location for budget-conscious individuals.
- Enfield: located in North London, Enfield strikes a perfect balance between city life and countryside allure.
- Hillingdon: looking for a middle ground in rent prices? Hillingdon’s mix of metropolitan centers and leafy suburbs will captivate you.
- Lewisham: in the heart of South London, Lewisham is vibrant and culturally diverse. Discover its numerous parks, shopping streets, and growing arts scene – a hotspot for affordability and city life.
- Redbridge: found in the north-eastern part of London, Redbridge is home to vast parks and conservation areas. Ideal for families searching for budget-friendly housing.
- Bromley: as the largest London borough, Bromley boasts fantastic shopping areas, restaurants, and lush green spaces. Plus, it offers reasonable rent prices that will surely captivate you.
If you’re looking to buy or rent in any of these locations and before you commit, ensure its the right property for you with our property report. We’ve made your research easy.
Cheapest places to live in London: average London house prices
London’s average house prices are the most expensive of any region of the UK, sitting at an average of £537,000 in September 2023. This is much higher than the UK average of £291,000.
So, unsurprisingly, it doesn’t feature on the list of cheapest places to buy a house.
Cheapest places to live in London: average London rent prices
Average rental prices in London are £2,192, 70% higher than the rest of the UK average which is £1,283. The rental market across the UK is busy again with rents rising. London is still by no means the cheapest place to rent.
What is the cost of living for Londoners?
The average salary in London is £44,370, which means some Londoners spend around 59% of their wages on rent. Of course, this could be higher or lower depending on the individual circumstances.
Cost of living in London for a single person is around £1,100 a month, not including rent. However, there are many factors that will affect how much someone will pay, including:
- Council tax
- Transport links in the area
- Property size
- Market changes
Many choose to live in a London commuter town as a way to get easy access to the city centre, while still being more affordable. However, for some, the pull of the capital can’t be ignored.
Top 12 Cheapest places to live in London
Which areas in London are the cheapest? While the above might have painted a somewhat bleak picture, London is made up of many different areas, some more affordable than others. Let’s take a look at some average monthly upper quartile rents in London (between 1 April 2022 to 31 March 2023), as well as sold prices*.
*Accurate as of November 2023, according to the latest UK house price index
12 – Bromley
Average house price: £502,753
Average rent: £1,600 pcm
Bromley is the biggest of all London boroughs, and one of the cheapest areas to buy and rent, compared to the capital overall. It claims last spot on this list but its house prices are still remarkably lower than other parts of London e.g. Kensington & Chelsea, which sits at a staggering £1,336,232!
While it has no underground station, Bromley is well-connected by trains, including express services; London Victoria to Bromley South takes only 16 minutes. There’s also a network of buses that runs throughout the borough.
11 – Redbridge
Average house price: £504,869
Average rent: £1,600 pcm
The Redbridge borough is located in East London, home to Newbury Park and some great transport links to the centre. For example, there are around six trains to Liverpool Street every hour. It’s one of the best places to buy in London in terms of comparatively low house prices, making it particularly popular with first-time buyers.
10 – Lewisham
Average house price: £483,377
Average rent: £1,650 pcm
Many young professionals choose to live in Lewisham thanks to its excellent transport links, including the DLR. It may not have the best reputation for crime, but there are plenty of things to do, from pop-up eateries to bars. It’s also popular with families, with many choosing to settle in the area. In Lewisham you also pay the lowest London median monthly rent (£1,350).
9 – Hillingdon
Average house price: £455,107
Average rent: £1,500 pcm
Whether you’re looking to buy or rent, you’ll find it easier to do in Hillingdon than other parts of London, particularly those north of the river. Property in London isn’t cheap, but Hillingdon is more affordable than others, sandwiched in between Uxbridge and Hayes. It also sits on both the Metropolitan and Piccadilly lines, which is good news for commuters.
8 – Enfield
Average house price: £454,410
Average rent: £1,600 pcm
While rents are slightly pricier than other boroughs on this list, Enfield’s house prices are significantly lower than many areas of London. It appeals to many as it has plenty of green spaces, and the charm of small town life, together with some excellent transport links. For example, you can get to Liverpool Street and Moorgate in just over half an hour.
7 – Greenwich
Average house price: £445,801
Average rent: £1,750 pcm
Home to a number of tourist attractions, including Greenwich Park and the Royal Observatory, Greenwich attracts young professionals and families alike. Its transport connections include the DLR and National Rail, as well as a wide array of buses.
6 – Sutton
Average house price: £437,958
Average rent: £1,400 pcm
Plenty of green spaces and rail connections that run to London Victoria, London Bridge, St Pancras and Clapham Junction make Sutton a popular location for those looking for the best of both worlds. It’s hugely popular with families due to the excellent array of local schools.
5 – Havering
Average house price: £428,316
Average rent: £1,450 pcm
Havering is the most easterly London borough, just before Essex, popular with those looking for an easy commute and more affordable property prices. Havering will likely increase even further in the future, as the long-awaited Elizabeth Line is due to arrive. Many are looking to move there in anticipation of Crossrail, so house and rent prices will likely increase. From one bedroom flats to period properties, there are many different types of property on offer in the area.
4 – Croydon
Average house price: £430,541
Average rent: £1,425 pcm
Croydon has a great alternative and arts scene, and is becoming increasingly popular with those looking to escape the high house prices of central London. There are many parts of Croydon to choose from, including Caterham and Purley, each offering their own charms. The Brighton Mainline rail links Croydon with Central London, as well as other parts of the UK like Sussex. The borough also has a network of trams.
3 – Newham
Average house price: £415,168
Average rent: £1,712 pcm
Entering the top 3 now we have Newham. Newham is among the least safe boroughs in London, however, that doesn’t paint the full picture. It’s also home to the ExCel Centre, Westfield shopping centre and East Village, a new neighbourhood that served as the athletes’ village during the 2012 Olympics. Its transport connections are good, including the DLR, and you’ll find London City Airport there too!
2 – Bexley
Average house price: £396,292
Average rent: £1,500 pcm
Just missing out on the top spot is Bexley, which can be found in south-east London, with main areas including Bexleyheath and Sidcup. Dartford can be found on one side and Bromley on the other. It doesn’t have the underground, but there are plenty of trains and buses servicing London. Danson Park in Welling is one of the main attractions.
1- Barking and Dagenham
Average house price: £345,314
Average rent: £1,500 pcm
Cheapest places to live in London summary
How can I live cheap in London? Claiming top spot in our cheapest places to live in London laydown is Barking and Dagenham, which has the most affordable house prices on this list. It doesn’t have the cheapest rent prices here, however, by London standards it fairs quite well. Barking underground station offers the Hammersmith and City and District Lines, and the area is also home to TFL rail. It’s easy to see why many choose to settle there for affordable house prices and good connections.
Cheapest places to live near London
1. Luton: located just north of London, Luton offers a more affordable living experience while being easily accessible to the capital via train.
2. Chatham: situated in Kent, Chatham’s maritime history and regeneration projects have made it an upcoming spot for those seeking cheaper alternatives to London living.
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Last Updated: September 22nd, 2024
