View over London's city center from One Tree Hill in South-East London
5 min read
Phil Spencer MBE Founder Move iQ

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 place to live in London in 2026
  • Outer boroughs offer far better value than central London
  • Average London house prices exceed £550,000
  • Renting remains expensive, but house shares reduce costs
  • A salary of £40,000–£50,000 may feel manageable (with a house share)
  • £50,000+ salary in London offers more breathing space
  • £60,000+ makes solo London renting far more sustainable
  • Dual incomes significantly improve affordability
  • 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 data, Barking and Dagenham currently ranks as the cheapest place to live in London in 2026.

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

  • Croydon
  • Newham
  • Bexley
  • Havering
  • Sutton
  • Greenwich
  • Enfield
  • Hillingdon
  • Redbridge
  • Lewisham
  • Bromley

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.

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Average London house prices

London remains the most expensive region in the UK.

That’s more than double the national average, which is why choosing the right borough matters so much.

Average London rent prices

Renters face similar challenges.

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

Accurate as of March 2026, according to the latest UK house price index.

12. Bromley

Average house price: £529,000
Average rent: £1,663 pcm

The largest London borough offers green space, strong rail links and more competitive pricing than inner London. London Victoria to Bromley South takes just 16 minutes by express train.

11. Lewisham

Average house price: £499,000
Average rent: £1,806 pcm

Popular with young professionals thanks to DLR access and a growing food and arts scene. Well-connected and increasingly in demand.

10. Enfield

Average house price: £473,000
Average rent: £1,767 pcm

Offers green spaces and village charm, with Liverpool Street and Moorgate reachable in around 30 minutes.

9. Greenwich

Average house price: £478,000
Average rent: £1,943 pcm

Cultural landmarks, riverside living and strong DLR connections make Greenwich a sought-after yet comparatively affordable choice.

8. Redbridge

Average house price: £517,000
Average rent: £1,716 pcm

Six trains an hour to Liverpool Street and plenty of parks make Redbridge attractive to first-time buyers and families alike.

7. Hillingdon

Average house price: £478,000
Average rent: £1,548 pcm

Served by the Metropolitan and Piccadilly lines, Hillingdon, in west London, blends suburban calm with practical commuting options.

6. Havering

Average house price: £448,000
Average rent: £1,564 pcm

Bordering Essex, Havering offers suburban value with Elizabeth line access boosting future appeal.

5. Sutton

Average house price: £451,000
Average rent: £1,544 pcm

Excellent schools and rail links to Victoria, London Bridge and St Pancras make Sutton ideal for families.

4. Bexley

Average house price: £412,000
Average rent: £1,536 pcm

South-east London value with strong rail services and green spaces like Danson Park.

3. Newham

Average house price: £402,000
Average rent: £1,910 pcm

Home to the ExCel Centre and Westfield Stratford, with DLR links and proximity to Canary Wharf.

2. Croydon

Average house price: £395,000
Average rent: £1,556 pcm

Fast Brighton Mainline trains and a strong arts scene make Croydon a top alternative to central London prices.

1. Barking and Dagenham

Average house price: £360,000
Average rent: £1,684 pcm

The cheapest borough in London in 2026 to buy. Regeneration, new developments and Elizabeth line access are transforming the area into a strong value hotspot for buyers and renters.

Cheapest places to live in London for families

Families typically prioritise schools, green space and safety.

Top affordable boroughs include:

  • Sutton – outstanding schools and 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 at lower rents

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.

  • Barking and Dagenham – lowest rents
  • Newham – close to Queen Mary University
  • 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?

The average London salary is £49,816, but income varies widely across boroughs.

Estimated monthly London costs for a single person:

  • Living costs (excluding rent): £1,089 per calendar month
  • Council tax: £100–£170 per month
  • Travel card: £175–£315 per month

Factors that affect your total spend include:

  • Property size
  • Location
  • Transport needs
  • Market changes

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

In short, it’s extremely difficult.

You would likely need:

  • A room in a house share (£500–£700)
  • Strict food budgeting
  • Minimal travel and entertainment
  • No unexpected expenses

For most people, a realistic minimum budget is closer to £1,500–£2,000 per month.

What salary do you need to live comfortably in London?

A salary of £40,000–£50,000 is often quoted as enough to live comfortably in London, but in 2026, that depends heavily on your housing situation.

Using the 30–35% affordability guideline, a £45,000 salary supports rent of around £1,300–£1,400 pcm, leaving room for bills, transport and some savings.

The reality, however, is that even in the more affordable boroughs listed above, average rents exceed that figure. For example, Bexley, one of the cheapest boroughs on our list, has average rents starting from £1,530 pcm. Renting an entire property alone on £45,000 could therefore feel tight.

In practical terms:

  • £50,000+ offers more breathing space, particularly if you want flexibility in your location or lifestyle.
  • £60,000+ makes solo renting far more sustainable, with greater capacity to save and manage rising costs.

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.

Families living in London may require £60,000–£80,000 combined income.

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

You’ll often gain larger homes, lower stress and a strong community feel, with London still within easy reach.

FAQs: Cheapest places to live in London

What is the cheapest borough in London?

Barking and Dagenham currently has the lowest average house prices in London.

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?

Barking and Dagenham and Hillingdon typically offer some of the lowest rental averages.

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: March 27th, 2026