Cheapest Places to Live in London

Searching for the cheapest places to live in London? You’re not alone. While the capital has a reputation for eye-watering property prices, there are still boroughs where your money stretches further.

In this guide, we’ll explore the most affordable areas to buy and rent in London, break down average house prices and rents, and help you decide where offers the best value for your budget. Whether you’re a first-time buyer, renter, student or growing family, we’ll help you make sense of your options.

Key takeaways

• Barking and Dagenham is the cheapest London borough to buy a home in 2026
• Outer boroughs offer far better value than central London
• The average London house price is around £550,000
• The average London private rent is £2,332 per month
• Renting remains expensive, but house shares reduce costs
• Bexley has the lowest average rent among the boroughs featured in our top 12
• How affordable London feels depends heavily on your income, housing situation and location
• London commuter towns can provide significant savings

Which part of London is cheapest?

Buying a home in London isn’t easy, but some boroughs are far more affordable than others. Based on the latest house price data, Barking and Dagenham currently ranks as the cheapest London borough to buy a home in 2026.

Other boroughs consistently offering better value than the London average include:

• Croydon
• Newham
• Bexley
• Tower Hamlets
• Havering
• Sutton
• Greenwich
• Hillingdon
• Enfield
• Redbridge
• Lewisham

The key is balancing price with transport links, local amenities and long-term growth potential.

Before committing to a London area purchase, make sure it’s the right property for you with a Move iQ property report. It’s a simple way to check local insights and avoid costly surprises.

Average London house prices

London remains the most expensive region in the UK.

• Average London house price (July 2026): £550,037
• UK average house price: £273,000

That’s around twice the national average, which is why choosing the right borough matters so much.

Average London rent prices

Renters face similar challenges.

• Average London private rent (August 2026): £2,332 per month

While London isn’t the cheapest place to rent, outer boroughs can offer significant savings compared to central postcodes.

12 cheapest places to live in London

House prices are based on July 2026 UK House Price Index data. Rental figures are based on August 2026 ONS Price Index of Private Rents data, published in September 2026. House price figures are provisional and may be revised.

12. Lewisham

Average house price: £489,000
Average rent: £1,829 pcm

Lewisham offers a good balance of south London living, green space and transport connections. The DLR and National Rail provide easy access into central London, while areas such as Lewisham and Deptford continue to attract young professionals.

11. Redbridge

Average house price: £481,000
Average rent: £1,726 pcm

Redbridge is popular with families and commuters thanks to its parks, suburban feel and transport links. The Elizabeth line provides fast connections into central London from stations including Ilford.

10. Enfield

Average house price: £471,000
Average rent: £1,827 pcm

Enfield combines suburban neighbourhoods with plenty of green space, making it an appealing option for buyers looking for more room. Rail links provide straightforward journeys into Liverpool Street and Moorgate.

9. Hillingdon

Average house price: £471,000
Average rent: £1,570 pcm

Located in west London, Hillingdon offers comparatively affordable rents alongside good transport connections. The borough is served by the Metropolitan and Piccadilly lines and also benefits from proximity to Heathrow.

8. Greenwich

Average house price: £463,000
Average rent: £1,995 pcm

Greenwich combines riverside living, historic landmarks and strong transport links. DLR, rail and Elizabeth line services make it well connected, although average rents remain higher than in many of the outer London boroughs on this list.

7. Sutton

Average house price: £453,000
Average rent: £1,556 pcm

Sutton is particularly popular with families thanks to its schools, parks and suburban character. Regular rail services into Victoria and London Bridge also make it a practical option for commuters.

6. Havering

Average house price: £449,000
Average rent: £1,565 pcm

Bordering Essex, Havering offers a more suburban feel while remaining well connected to central London. Elizabeth line services from areas including Romford have strengthened its appeal for commuters.

5. Tower Hamlets

Average house price: £448,000
Average rent: £2,453 pcm

Tower Hamlets stands out for offering comparatively lower purchase prices for an inner London borough. The borough includes Canary Wharf and areas close to the City, although its average rents are considerably higher than those found in many outer London boroughs.

4. Bexley

Average house price: £413,000
Average rent: £1,537 pcm

Bexley remains one of London’s most affordable boroughs for both buyers and renters. Its green spaces, suburban neighbourhoods and rail connections into central London make it attractive to families and commuters.

3. Newham

Average house price: £390,000
Average rent: £1,928 pcm

Newham offers some of the lowest average house prices in London while benefiting from excellent transport connections. The borough includes Stratford and the Royal Docks, with easy access to Canary Wharf and central London.

2. Croydon

Average house price: £390,000
Average rent: £1,582 pcm

Croydon continues to offer comparatively affordable property prices alongside fast rail connections into central London. Its mix of shops, restaurants, green spaces and cultural venues makes it popular with a wide range of buyers and renters.

1. Barking and Dagenham

Average house price: £376,000
Average rent: £1,698 pcm

Barking and Dagenham is currently the cheapest London borough to buy a home based on average house prices. Ongoing regeneration, new housing developments and strong transport links continue to make it an attractive option for buyers looking for better value in the capital.

Cheapest places to live in London for families

Families typically prioritise schools, green space and safety.

Top affordable boroughs include:

• Sutton – schools, parks and a strong community feel
• Bromley – vast parks and shopping facilities
• Redbridge – conservation areas and family housing
• Havering – suburban lifestyle with good value
• Bexley – historical charm and competitive pricing
• Enfield – countryside feel with city access

These areas combine affordability with space and amenities.

Cheapest places to live in London for young professionals

Young professionals often focus on commuting speed and lifestyle.

• Lewisham – DLR links and growing nightlife
• Croydon – creative energy and fast rail routes
• Newham – proximity to Canary Wharf
• Greenwich – riverside living and culture
• Barking and Dagenham – new developments and comparatively affordable housing

House shares in these boroughs can significantly reduce monthly costs.

Cheapest places to live in London for students

Students need affordability and strong transport links.

• Bexley – lowest average rent among the boroughs on this list
• Newham – strong transport links across east and central London
• Croydon – vibrant social scene
• Lewisham – strong South London links
• Greenwich – home to the University of Greenwich

House shares and purpose-built student accommodation can make these areas even more manageable.

What is the cost of living in London?

There isn’t one single monthly figure that accurately represents the cost of living in London. What you spend will depend heavily on where you live, your housing situation, travel needs and lifestyle.

ONS earnings data also shows that pay varies considerably depending on occupation and working pattern, so a single “average London salary” does not tell the whole story.

Some of the main costs to consider include:

• Rent or mortgage payments
• Council tax, which varies by borough and property band
• Food, utilities and household bills
• Transport – monthly Travelcards currently range from £171.70 for Zones 1–2 to £313.40 for Zones 1–6 (Applicable from 2nd March 2025 and frozen until 2027.)

Factors that affect your total spend include:

• Property size
• Location
• Transport needs
• Market changes

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

If that £1,000 needs to cover your housing as well as everyday living costs, it would be extremely difficult for most people in London.

Sharing a property can reduce your housing costs considerably compared with renting an entire home, but the amount you’ll need each month will depend on the rent, bills, transport costs and other expenses associated with your particular area and lifestyle.

Rather than relying on one minimum monthly figure, it’s more useful to build a budget around your actual housing costs and essential outgoings.

What salary do you need to live comfortably in London?

There is no single salary that guarantees a comfortable lifestyle in London. How far your income goes depends heavily on whether you rent alone, house share or split costs with someone else, as well as where in the capital you choose to live.

One way of looking at rental affordability is to compare rent with gross household income. The ONS considers rent affordable where it is equivalent to 30% or less of gross household income, although it notes that there is no universally accepted affordability threshold.

As an illustration, 30% of a £45,000 gross annual salary is around £1,125 per month. However, the amount someone can comfortably spend on rent will depend on their wider household income, bills, debts and other living costs.

The reality, however, is that even in the more affordable boroughs listed above, average rents exceed that figure. For example, Bexley, currently the cheapest London borough for average private rents among the locations on this list, has an average rent of £1,537 pcm. Renting an entire property alone on £45,000 could therefore feel tight.

A higher salary can make solo renting more manageable, particularly once rent, council tax, transport and other living costs are taken into account.

Ultimately, how comfortable your salary feels in London depends on whether you’re renting alone, house sharing, or splitting costs and which borough you choose.

For many Londoners, particularly first-time renters and young professionals, a room in a house share is often the most realistic and financially comfortable option. House sharing can significantly reduce monthly rent, free up disposable income and make living in the capital far more manageable, especially in outer boroughs where transport links are strong.

If your goal is to live independently in a whole property, you may need a higher salary, dual income, or to consider commuter towns where rental prices are lower.

For families, the amount of household income needed will vary significantly depending on the number of people in the household, childcare costs, housing needs and location.

Where to live if you can’t afford London

If London remains out of reach, commuter towns can offer better value with fast rail links:

• Reading
• Luton
• Basildon
• Stevenage
• Slough

Depending on the location and property, moving outside London can give you access to more space or lower housing costs while keeping the capital within commuting distance. Always factor rail fares and commuting time into the overall cost before deciding whether a commuter town offers better value.

FAQs: Cheapest places to live in London

What is the cheapest borough in London?

Barking and Dagenham currently has the lowest average house price in London, at around £376,000 according to July 2026 UK HPI data.

Is London affordable for first-time buyers?

It can be in outer boroughs such as Croydon, Bexley and Newham, particularly with government schemes or shared ownership.

Which borough has the cheapest rent?

Among the boroughs featured in this list, Bexley currently has the lowest average private rent at £1,537 per month, followed by Sutton at £1,556 and Havering at £1,565.

Are the cheaper areas in London safe?

Safety varies street by street. Always research local crime data and visit the area at different times of day.

Should I move outside London instead?

If affordability is your top concern, London commuter towns can offer better value and more space while keeping London accessible.

Thinking about buying or renting in one of these affordable London boroughs? Move iQ is here to guide you with expert insights, trusted partners and practical tools that simplify your property journey.

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Last Updated: October 6th, 2026