Cheapest Places to Live in London

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!

Which part of London is cheapest?

Buying a house in London can be challenging, 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 areas to buy or rent in London.

1. Barking & Dagenham: is one of the more affordable places to live in London, situated on the eastern outskirts, offering great value for money.
2. Croydon: combining urban living with green spaces, Croydon in South London offers a steady lifestyle at a fair cost.
3. 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.
4. Bexley: nestled in the south-eastern part of London, with parks and historical sites, making it an appealing choice near the city center.
5. Havering: Havering has caught the attention of many who are seeking value for their money and a suburban feel.
6. Sutton: known for its exceptional schools. Sutton is blending suburban charm with easy transport links to central London, an underrated gem for affordable living.
7. Greenwich: offering a mix of cultural vibrancy and tranquillity, Greenwich is a sought-after location for budget-conscious individuals.
8. Enfield: located in North London, Enfield strikes a perfect balance between city life and countryside allure.
9. Hillingdon: looking for a middle ground in rent prices? Hillingdon’s mix of metropolitan centers and leafy suburbs will captivate you.
10. Redbridge: found in the north-eastern part of London, Redbridge is home to vast parks and conservation areas. Ideal for families searching for the cheapest houses in London.
11. 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.
12. 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 in London or rent in any of these locations, and before you commit, ensure it’s 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 ££547,468 in October 2025. This is much higher than the average house price for the United Kingdom at £270,000. 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 £2,219. 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 £49,692; within London itself, there is also a great degree of inequality. In 2023, for example, the average earnings in Kensington and Chelsea were 964 pounds per week, compared with 675 pounds in Barking and Dagenham.

The 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. 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.

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 rents in London, as well as sold prices*.

*Accurate as of December 2025, according to the latest UK house price index.

12. Bromley

Average house price: £530,000

Average rent: £1,648 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 and Chelsea, which sits at a staggering £1,195,000.

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. Lewisham

Average house price: £504,000

Average rent: £1,803 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.

10. Redbridge

Average house price: £485,124

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.

9. Hillingdon

Average house price: £483,000

Average rent: £1,540 pcm

Whether you’re looking to buy or rent, you’ll find it easier to do so in Hillingdon than in other parts of west London, particularly those north of the river. Property in London isn’t cheap, but Hillingdon is more affordable than others, sandwiched 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: £480,000

Average rent: £1,744 pcm

While rents are slightly pricier than in other boroughs on this list, Enfield’s house prices are significantly lower than those in 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 good transport links to central London. For example, you can get to Liverpool Street and Moorgate in just over half an hour.  

7. Greenwich

Average house price: £473,000

Average rent: £1,907 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: £453,000

Average rent: £1,533 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: £451,000

Average rent: £1,561 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. Bexley 

Average house price: £410,000

Average rent: £1,521 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.

3. Newham 

Average house price: £406,000

Average rent: £1,892 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. Croydon 

Average house price: £393,000

Average rent: £1,542 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 its 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.

1. Barking and Dagenham

Average house price: £355,000

Average rent: £1,673 pcm

Barking and Dagenham tops the list as the cheapest place to live in London in 2026, making it an increasingly popular choice for first-time buyers and renters priced out of more central boroughs. Located in East London, the borough has benefited from significant regeneration in recent years, bringing new housing developments, improved amenities and growing employment opportunities.

Areas such as Barking, Dagenham and Becontree offer a mix of affordable housing options, from purpose-built apartments to traditional family homes. Transport links are a major draw, with the District line, London Overground, c2c services and the Elizabeth line nearby, providing fast and direct access into central London and beyond. With riverside developments, expanding green spaces and strong value for money, Barking and Dagenham continues to stand out as a smart option for affordable London living.

Cheapest places to live in London for families

When searching for the cheapest places to live in London for families, prioritising excellent schools, green spaces and safe neighbourhoods becomes essential. Sutton stands out as the top choice for families thanks to its outstanding schools and family-friendly atmosphere, with average house prices of £453,000 and rent at £1,533 per month.

Bromley offers vast green spaces and excellent shopping facilities, making it ideal for growing families seeking affordable housing in London. Redbridge provides numerous parks and conservation areas perfect for children, while Havering delivers a true suburban feel with good value properties.

Bexley combines historical sites and parks with competitive pricing, and Enfield balances city accessibility with countryside charm. These boroughs provide the perfect combination of affordability, quality education and family amenities that make London living more accessible for households.

Cheapest places to live in London for young professionals

Young professionals seeking the cheapest places to live in London typically prioritise excellent transport links, vibrant nightlife and career opportunities. Lewisham has become increasingly popular among this demographic, offering fantastic DLR connections, a growing arts scene, pop-up eateries and bars, all for an average rent of £1,803 per month.

Croydon attracts creative professionals with its alternative arts scene and direct rail links to central London via the Brighton Mainline, with rents averaging £1,542 per month. Newham provides exceptional value at £1,892 per month rent, placing young professionals within easy reach of Canary Wharf, the ExCel Centre and Westfield shopping centre.

Greenwich combines cultural attractions with riverside living and strong transport connections via the DLR and National Rail. Barking and Dagenham, the most affordable option at £1,673 per month, offers new developments and rapidly improving amenities with excellent Elizabeth line connections for quick commutes to central London and the financial districts.

Cheapest places to live in London for students

Students looking for the cheapest places to live in London need to balance affordability with proximity to universities and entertainment options. Barking and Dagenham offers the lowest rents in London at an average of £1,673 per month, with excellent Elizabeth line connections to universities across the capital. Newham provides great value for students at £1,892 per month, with proximity to Queen Mary University of London and easy access to the city centre via the DLR and multiple tube lines.

Croydon attracts students with its vibrant alternative scene, affordable rent of £1,542 per month and connections to universities in both London and Surrey. Lewisham combines affordability with a lively social scene and excellent transport links to universities across South London.

Many students also consider house shares in these areas, which can significantly reduce individual costs. Areas near universities such as Greenwich (home to the University of Greenwich) and Newham often have purpose-built student accommodation that can offer competitive rates compared to private rentals.

Can you live on £1,000 a month in London?

Living on £1,000 a month in London is extremely challenging and, for most people, simply not feasible when considering all necessary expenses. The average cost of living for a single person in London is approximately £1,100 per month excluding rent, which already exceeds this budget. When you factor in that average London rent is £2,219 per month, it becomes clear that £1,000 cannot cover both rent and living expenses in London.

However, there are very limited scenarios where this might be possible: living in a house share in one of the cheapest London boroughs like Barking and Dagenham, where your portion of rent might be £500-700 per month, leaving £300-500 for food, transport and other essentials.

You would need to strictly budget, cook all meals at home, use only public transport with an off-peak travel card, avoid entertainment expenses and have no unexpected costs. Realistically, most people would need at least £1,500-2,000 per month minimum to live in London even in the most affordable areas, making £1,000 a month insufficient for sustainable London living.

When you factor in that average London rent is £2,219 per month, it becomes clear that £1,000 cannot cover both rent and living expenses in London. However, there are very limited scenarios where this might be possible: living in a house share in one of the cheapest London boroughs like Barking and Dagenham, where your portion of rent might be £500-800 per month, leaving £300-500 for food, transport and other essentials.

You would need to strictly budget, cook all meals at home, use only public transport with an off-peak travel card, avoid entertainment expenses and have no unexpected costs. Realistically, most people would need at least £1,500-2,000 per month minimum to live in London, even in the most affordable areas, making £1,000 a month insufficient for sustainable London living.

What salary do I need to live in London comfortably?

To live comfortably in London, financial experts generally recommend a salary of at least £40,000-£50,000 per year for a single person, though this varies based on lifestyle expectations and accommodation choices. The average London salary is £49,692, which provides a useful benchmark.

Using the common guideline that rent should not exceed 30-35% of your income, a salary of £45,000 would allow for approximately £1,300-1,400 monthly rent, which is achievable in many of London’s more affordable boroughs. This salary level would also cover the average £1,100 monthly cost of living expenses, council tax averaging £100-150 per month, transport costs of £150-200 for a monthly travel card, and still leave room for savings and discretionary spending.

For families or those seeking to live in more central locations, a combined household income of £60,000-£80,000 would provide greater comfort. Living in the cheapest areas of London, such as Barking and Dagenham, Croydon, or Bexley can make a comfortable lifestyle achievable on slightly lower salaries of £35,000-£40,000, particularly if you’re willing to house share or live further from central London.

This salary level would also cover the average £1,100 monthly cost of living expenses, council tax averaging £100-150 per month, transport costs of £150-200 for a monthly travel card, and still leave room for savings and discretionary spending.

For families or those seeking to live in more central locations, a combined household income of £60,000-£80,000 would provide greater comfort. Living in the cheapest areas of London, such as Barking and Dagenham, Croydon, or Bexley can make a comfortable lifestyle achievable on slightly lower salaries of £35,000-£40,000, particularly if you’re willing to house share or live further from central London.

Where to live if you can’t afford London?

If London’s high costs prove unmanageable, there are numerous alternatives offering excellent quality of life and strong connections to the capital. Commuter towns surrounding London provide more affordable housing while maintaining easy access to central London for work.

Reading, located 40 minutes from London Paddington, offers average house prices around £325,000 and strong employment opportunities. Luton, 30 minutes from St Pancras, provides even more affordable housing with prices averaging £280,000. Chatham and Gillingham in Kent offer properties from £250,000 with trains to London in under 45 minutes.

Basildon in Essex delivers excellent value with average house prices of £300,000 and direct trains to London Fenchurch Street.

Stevenage, just 25 minutes from King’s Cross, combines affordable living with its own thriving economy. Slough offers proximity to both London and Heathrow Airport with more reasonable housing costs.

These commuter towns also benefit from their own amenities, shopping centres, schools and community facilities, meaning you’re not entirely dependent on London for entertainment and services. Many people find that the improved quality of life, larger properties and reduced financial stress in these areas more than compensate for the additional commute time.

Reading, located 40 minutes from London Paddington, offers average house prices around £325,000 and strong employment opportunities. Luton, 30 minutes from St Pancras, provides even more affordable housing with prices. Chatham and Gillingham in Kent offer good transport connections, with trains to London in under 45 minutes.

Basildon in Essex delivers excellent value and direct trains to London Fenchurch Street. Stevenage, just 25 minutes from King’s Cross, combines affordable living with its own thriving economy. Slough offers proximity to both London and Heathrow Airport with more reasonable housing costs.

These commuter towns also benefit from their own amenities, shopping centres, schools and community facilities, meaning you’re not entirely dependent on London for entertainment and services. Many people find that the improved quality of life, larger properties and reduced financial stress in these areas more than compensate for the additional commute time.

How cheaply can you live in London?

The absolute cheapest way to live in London involves strategic choices across housing, transport and lifestyle. House sharing in the most affordable boroughs like Barking and Dagenham or Croydon can reduce your rent to £500-800 per month per person, compared to the London average of £2,219 for a whole property.

Minimising transport costs by living near your workplace or using a bicycle can save money on travel cards. Cooking all meals at home rather than eating out can keep food costs down. Shopping at budget supermarkets, buying own-brand products, and meal planning significantly reduce grocery bills.

Taking advantage of London’s many free attractions, museums, parks and community events provides entertainment without cost. Avoiding expensive central London boroughs and instead embracing outer London areas delivers substantial savings. Using comparison websites for utilities and choosing the cheapest providers for phone, internet and energy can save hundreds annually.

Realistically, the absolute minimum budget for living in London while maintaining a basic quality of life would be approximately £1,200-1,500 per month, including rent in a house share, which requires careful budgeting and lifestyle adjustments but remains achievable for those committed to making London living work on a tight budget.

Cheapest places to live near London

For those who love being close to London but find the capital’s prices prohibitive, numerous surrounding areas offer excellent value while maintaining strong transport links. Dartford in Kent provides some of the best value near London, with average house prices around £360,000 and frequent trains to London Bridge in just 30 minutes.

Grays in Essex offers even more affordable housing at approximately £320,000 average, with c2c rail services to Fenchurch Street in 35 minutes. Watford, just beyond the M25, combines affordability with its own thriving town centre and Metropolitan line access to central London in 40 minutes.

Gravesend in Kent delivers excellent value with average house prices of £315,000 and fast trains to London in under 30 minutes.

Harlow in Essex provides spacious properties averaging £310,000 with direct trains to Liverpool Street in 35 minutes.

Tilbury offers some of the cheapest housing in the London commuter belt at around £280,000, with c2c rail connections to London in 40 minutes.

Romford, while technically in the London Borough of Havering, sits on the Essex border and offers good value at £420,000 average with excellent Elizabeth line connections. These areas allow residents to enjoy more space, lower living costs and often better schools while maintaining easy access to London for work and entertainment, making them ideal alternatives to living within the capital itself.

Grays in Essex offers even more affordable housing at approximately £320,000 average, with c2c rail services to Fenchurch Street in 35 minutes. Watford, just beyond the M25, combines affordability with its own thriving town centre and Metropolitan line access to central London in 40 minutes. Gravesend in Kent delivers excellent value with average house prices of £315,000 and fast trains to London in under 30 minutes.

Harlow in Essex provides spacious properties averaging £310,000 with direct trains to Liverpool Street in 35 minutes. Tilbury offers some of the cheapest housing in the London commuter belt at around £280,000, with c2c rail connections to London in 40 minutes.

Romford, while technically in the London Borough of Havering, sits on the Essex border and offers good value at £420,000 average, with excellent Elizabeth line connections. These areas allow residents to enjoy more space, lower living costs and often better schools while maintaining easy access to London for work and entertainment, making them ideal alternatives to living within the capital itself.

Need more property advice?

We’re here to help you every step of the way, whatever stage you’re at. Subscribe to our newsletter for more top tips and regular advice from Phil Spencer himself.

Last Updated: January 19th, 2026