Where Are the Cheapest Places to Live in London? A Guide
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by Property Investments UK
The Property Investments UK editorial team have been researching and writing about the UK's property market for more than a decade.
London is generally regarded to be an expensive place to live. But there are cheap places to live in London …. if you know where to look. We’ve crunched the numbers and found which are the cheapest places to live in London when it comes to the average cost to buy a home and the average cost to rent a home.
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Is it Possible to Find a Cheap Place to Live in London?
Living costs and especially housing costs in London are on a different level to the rest of the country. Compared to the rest of the UK, nowhere in London is really that cheap. But there are places that are relatively cheap to live …. compared to the London average.
The Average House Price
The average house price in England is currently £308,663, but the average house price across Greater London is just over £900,000. The most expensive London postcodes have properties with an average price over £2 million.
On average, a house in Greater London costs three times that of the average house in the rest of the country.
Although it wouldn’t be considered cheap in the rest of the UK a good rule of thumb is that any area of London with average prices under £425,000 or thereabouts can be considered a cheap area in London terms.
Average Rent
The average rent across England is currently £1,276 PCM, but the average rent in London is £2,179 – according to the current HomeLet Rental Index.
On average, London is 70% more expensive to rent in than the rest of the country.
Although it wouldn’t be considered cheap in the rest of the UK a good rule of thumb is that any area of London with average monthly rents of £1,600 or less (approximately £400 weekly) can be considered a cheap rental area in London terms.
The 15 Cheapest Places to Live in London
Here are the top 15 cheapest places to live in London based on average housing costs:
Anerley
Anerley is in southwest London, around 7 miles from central London. The Anerley district comprises Anerley and Penge and part of Crystal Palace and Beckenham. It is within the London Borough of Bromley. Anerley has connections to Canary Wharf (20 minutes), and the City (29 minutes), and elsewhere around London on the London Overground system.
The average property price in Anerley (based on the SE20 postcode area) is just £425,761. The average rent in Anerley (SE20) is just £346 per week. This puts Anerley in the top 10 cheapest places to rent in London.
Croydon
Croydon is in south London. Croydon is the second-largest London borough and has a population of around 385,000. The town centre has benefitted from lots of regeneration in recent years with many newly built apartments.
Croydon is a jobs hotspot but also a great location for London commuters. Victoria and London Bridge can be reached in 15 minutes from East Croydon train station.
The average property price in Croydon is just £389,303. (This relates to the CR0 postcode area which comprises some or all of Croydon, Addington, Addiscombe, Beddington, Broad Green, Coombe, Forestdale, Mitcham Common, New Addington, Selhurst, Shirley, Spring Park, Thornton Heath, Waddon and Woodside.) This puts Croydon within the top 15 cheapest parts of London for housing costs.
Those renting in Croydon (CR0) pay an average of £361 per week.
Dagenham
Dagenham is in east London and is part of the London borough of Barking and Dagenham. Dagenham was historically a heavy industrial area but is undergoing lots of regeneration and new development. A council-owned organisation, Be First, is leading an ambitious programme of regeneration across the borough.
The cheapest areas of Dagenham to live in are the RM9 and RM10 postcode areas, mainly comprising Dagenham, Becontree and Beam Park. In RM9 the average property price is £369,755 and in RM10 a home costs slightly less at £368,644.
In Dagenham, RM9 renters can expect to pay £379 weekly on average in rent, while those in RM10 pay a shade less at £369 weekly.
Enfield
Enfield is in north London, around 10 miles from central London.
For a Greater London location Enfield benefits from being close to lots of green space. Enfield has great access into London for commuters via the Piccadilly Line of the London Underground and the London Overground, plus good road connections to the M25, A10 and A406 North Circular.
Enfield has some of the cheapest property in north London and is especially popular with families looking for good value. The EN3 district (Enfield Highway, Enfield Island Village, Enfield Lock, Enfield Wash, Ponders End and part of Southbury) is the cheapest for buyers. The average property price in EN3 is just £386,756. Renters here pay an average of £387 a week.
Erith
Erith is in the southeast of London close to the Greater London boundary with Kent and right by the River Thames. It is part of the borough of Bexley.
Erith comprises two postcode areas, DA8 (Erith, Northumberland Heath, Slade Green) and DA18 (Erith Marshes and part of Thamesmead). The cheapest place to live is the DA18 area.
The average property price here is just £272,114 making Erith the cheapest part of London to buy a property by some margin. Rents here are £312 per week on average meaning Erith is the second cheapest part of London to rent in.
Feltham
Feltham is in west London, around 13 miles from the city centre, and is mostly within the London borough of Hounslow. Feltham has good transport links by road and rail around the area. London Heathrow Airport and the many business parks in the area provide lots of jobs.
Feltham is often described as an up-and-coming area offering good value living costs. The average house price in Feltham (based on the TW13 postcode area) is just £398,788, putting it amongst the top 20 cheapest places in London for housing. The average rent in TW13 is just £352, making it one of the cheapest places to rent a home in the capital.
Harold Wood
Harold Wood is a residential suburb on the fringes of east London, close to the large town of Romford. It is part of the London borough of Havering.
Harold Wood has good access around the area by road (via the A127, A12 and M25) and rail. Harold Wood benefits from a station on the new Elizabeth Line which provides fast access into the City, West End and other parts of London.
The average property price in Harold Wood (based on the RM3 postcode area which also includes Harold Hill, Harold Park and Noak Hill) just tops £400,000 at £405,523.
Rents in Harold Wood (RM3) are in the region of £356 per week on average.
Hayes
Hayes is a large town with a population of around 98,000 in west London. Hayes also includes the large suburb of Harlington to the south. The town is within Hillingdon borough.
Hayes has good transport links via road and rail having a new station, Hayes and Harlington, on the Elizabeth Line. Hayes is a suburban and commercial area with many workplaces in the area, including Heathrow Airport, making it a convenient place to live for airport workers.
Hayes offers reasonable living costs for London, with the average property (UB3 postcode area) being £390,500 and the average rent coming in at £366 a week.
Lower Edmonton
Lower Edmonton is in north London and is part of the wider Edmonton district.
Lower Edmonton has good road and rail links towards central London and elsewhere via the London Overground and national rail from Edmonton Green station.
The average property price in Lower Edmonton (based on the N9 postcode area) is £400,054, making it one of the top 20 cheapest places to buy in London. Renters here pay £371 per week on average.
Northolt
Northolt is located on the A40 around 10 miles west of central London. It is within the borough of Ealing. It is a convenient place to live for those who work at the many business parks around this part of west London and at Heathrow Airport.
Northolt is sometimes considered to be a budget-beating alternative to nearby Ruislip. Northolt is among the top 10 cheapest places in London for housing. Home buyers in Northolt can expect to pay £373,720 on average for a house. Renters on the other hand pay around £357 weekly in rent.
Romford
Romford is the main business, commercial and retail area for this part of east London. Romford is in Havering borough. Romford is a hotspot for new housebuilding and urban renewal with many new schemes in progress.
Romford has great train links into London via the new Elizabeth Line with the City and West End being only around 30 minutes away. This has helped make Romford a more popular place to live with cost-conscious commuters.
The RM1 district which includes Rise Park is the cheapest place to live in the area. The average property in Romford RM1 costs just £367,190, making it amongst the top 10 cheapest areas in London. It is one of the cheapest rental spots too – rents here are £345 a week on average.
Rush Green
Rush Green is a suburb on the western side of Romford. Rush Green is partly within the borough of Havering and partly within Barking and Dagenham.
Rush Green is well situated for the amenities in Romford and for travelling into London, as well as outside London and to the M25.
An average property in Rush Green (RM7 postcode) will cost buyers £397,588. Average rents in Rush Green stand at around £371 per week.
South Norwood
South Norwood is a suburb in southeast London, just to the north of Croydon. It is a mainly residential area which benefits from good access to both Croydon (7 minutes) and into London (approximately 20 minutes to Canary Wharf or the City) via mainline rail or London Underground train service from Norwood Junction.
South Norwood is one of the top ten cheapest places for housing costs in London. The average property price here in SE25 (which also includes part of Selhurst, Thornton Heath and Woodside) is just £369,765. Rents are some of the lowest in London at £338 a week on average.
Thamesmead
Thamesmead is in southeast London and sits in the boroughs of Greenwich and Bexley. Thamesmead is a purpose-designed community originally created in the 1960s. There are now some ambitious regeneration schemes in progress and planned to transform the district. Thamesmead now has much better transport connections into London with the new Elizabeth Line at nearby Abbey Wood too.
The average property price in Thamesmead (based on the SE28 postcode area) is just £322,568 – it is the second cheapest place to buy in London. Rents here are £374 weekly on average.
West Drayton
West Drayton is located on the western side of London close to Heathrow Airport. It is part of Hillingdon borough.
West Drayton is very well connected, being close to the M4 and M25. It also has a station on the Elizabeth Line. West Drayton’s proximity to Heathrow Airport makes it popular with those who work at the airport.
Those looking to buy a home in West Drayton (based on the UB7 postcode area which also includes Harmondsworth, Longford, Sipson and Yiewsley) can expect to pay an average of £374,493. Renting here will cost £378 per week on average.
So, Where are the Cheapest Places to Live in London?
According to our latest research, and based on a comparison of prices and rents, the cheapest places to live in Greater London are (in alphabetical order): Anerley, Croydon, Dagenham, Enfield, Erith, Feltham, Harold Wood, Hayes, Lower Edmonton, Northolt, Romford, Rush Green, South Norwood, Thamesmead and West Drayton.
About Our Data. Property prices and rents are based on figures from property.xyz with additional data from HomeLet and HousesForSaleToRent.co.uk.