Renting in London: Just Six Postcodes Remain with Rooms Under £800
The high cost of renting in London has become increasingly challenging for many residents, with the number of affordable options dwindling rapidly. According to new data from SpareRoom, just six postcodes in the capital now offer room rentals below £800 per month, which is approximately one-third of the average full-time worker’s monthly earnings.
These remaining affordable areas are located further out from the city center. E12 (Manor Park in East London) has emerged as the cheapest postcode to rent in 2024, with average monthly rents of £780. Other affordable options include SE20 (Penge), N18 (Upper Edmonton), SE2 (Abbey Wood), SE25 (Norwood), and SE23 (Forest Hill).
While these areas offer more budget-friendly rent prices, potential tenants should also consider the higher council tax rates in some of these postcodes. For example, in Newham, where Manor Park is located, properties valued between £120,001 and £160,000 are subject to an annual council tax of £2,350.87, which can add a significant expense to monthly outgoings.
The rising cost of living has forced many tenants to seek cheaper options further outside of central London. Despite the lower rents in these areas, demand for properties in popular central areas is decreasing. Former hotspots like Camden Town have seen a significant decline in popularity among renters.
However, some areas have experienced an increase in demand, particularly those located between seven and 11 miles from Central London. Crystal Palace, which has been dubbed the third highest climber in popularity, has received praise from locals for its affordability and amenities.
For anyone struggling with the high cost of renting in London, it’s essential to explore all available options and consider areas further out from the city center. By doing so, renters may be able to find more affordable accommodation that meets their needs and budget.
