Londoners' Affordable Renting: What Income Level is Actually Sufficient?
Struggling Renters in London Face Affordability Crisis
London, the capital city of England, continues to be the least affordable place for renters, with rent prices soaring and affordability pressures mounting compared to the rest of the country.
According to recent data, the average private rent in London stands at around £2,252 per month, substantially higher than the UK average rent of approximately £1,313 per month and the average outside London, which is around £1,132 per month.
This high cost of living has led to a significant strain on rental affordability, particularly in London's most expensive boroughs like Westminster and Kensington and Chelsea, where renters pay around 73-75% of the median local household income for a one-bedroom rental.
These high rent costs have contributed to widening poverty among London renters, with nearly 950,000 Londoners in private rented housing living in poverty in 2023/24, the highest since 2016 and doubling from 2004 levels.
Despite a slight easing of rental inflation in recent months, London still experienced an 11% annual increase in rents as of early 2025. In some boroughs like Kensington and Chelsea, rents have risen by 5.9% annually, averaging £3,616 per month in June 2025.
Trends show that some landlords are reducing rents in 26% of properties in 2025 to keep tenants, indicating some pressure on rental prices due to affordability ceilings.
In the political arena, both Keir Starmer, the new Labour government leader, and Lawson have expressed concern over London's housing crisis and called for urgent action. Starmer has laid out plans to build 1.5 million homes during his reign by reintroducing mandatory housebuilding targets, constructing new towns, and reforming the planning system. Lawson supports these plans and calls for urgent reform of the planning system to deliver more homes.
However, specific details on how these plans could help London are not yet available.
In comparison, the rest of England has lower average rents and more affordable options, especially in the North East and North West, where average rents for one-bedroom properties are well below London’s levels.
The table below provides a comparison of rental costs and affordability across London, the UK average (excluding London), and an example city like Manchester.
| Metric | London | UK Average (excluding London) | Example (Manchester) | |--------------------------|-------------------------|-------------------------------|------------------------| | Average rent (mid-2025) | £2,252 pm | £1,132 pm | £958 pm (1-bed in MCR) | | Rent inflation rate | ~7.3% YoY (slowing) | ~0.4% monthly, 0.4% YoY | 9% annual increase | | Rent as % of income | Up to 75% (expensive boroughs) | Much lower | Not specified | | Renters in poverty (2023/24) | ~950,000 in private rented housing | Lower proportion | Not specified | | Homelessness/rough sleeping | Record high (13,000+ in 2024/25) | Lower than London | Not specified |
This highlights London’s unique challenges with housing affordability and supply relative to the rest of England. For the most current detailed housing plans or government policies related to London, it is recommended to consult official London Government or housing authority sources.
Meanwhile, an increasing number of locals in London are struggling to cover the costs of food and childcare, underscoring the urgent need for affordable housing solutions in the city.
- The high costs of housing in London have extended beyond just rent, impacting the overall lifestyle expenses of its residents, with many struggling to afford basic necessities like food and childcare.
- The housing crisis in London has become a significant concern for policymakers and business leaders, with both Keir Starmer and Lawson advocating for reforms to address the issue and increase affordable housing availability.
- In contrast to London, other regions in England, such as the North East and North West, offer more affordable housing options, potentially attracting those seeking a less burdensome home-and-garden and general-news landscape.
