London rental prices: will they rise or fall in 2024?
London is a popular place to live as it offers easy access to thousands of attractions, shops and restaurants. It can be useful to live in if you have to commute to a city-based office regularly.
If you’re considering renting or buying a property in London, it’s worth exploring market trends and being in the know when it comes to the average cost of renting and whether prices are expected to rise or fall in 2024.
What is the average cost of rent in London?
According to Rightmove’s Rental Price Tracker, average London rents have risen 12.1% in a year to a record £2,627 a month, driven by not enough rental properties being available for prospective tenants.
Sadly, this trend isn’t limited to London, as the average rental property is currently getting 25 enquiries from prospective tenants to letting agents, more than triple the average (eight) in 2019.
Will London rent prices rise or fall in 2024?
It’s bad news if you want to live in London as the average monthly rent is expected to rise even further.
According to City Hall, average rental costs are forecast to jump to over £2,700 a month.
With Londoners already spending around 40% of their earnings on rent, this is likely to get worse as they’ll have to potentially pay even more for accommodation.
Should I rent or buy in London?
With the price of a London property reaching an average of nearly £700,000 over the last year, it’ll be very expensive to buy your own home in the capital.
A house deposit is usually the biggest barrier to home ownership but soaring mortgage costs over the last year have made it even more expensive for those hoping to get on the property ladder.
While it may be cheaper to rent in London for a short period of time, if you’re planning to live in the capital long-term, it could end up costing you more.
It’s a good idea to do your research to uncover the areas in London that are cheaper than average when it comes to renting or buying.
Which areas in London have the highest and lowest rental growth?
According to Savills, average rents in the UK will rise 6% in 2024 due to the continued imbalance between supply and demand.
If you’re considering becoming a landlord in London, having an idea of where average rents have soared (or not) can be useful.
Rightmove has revealed the areas in the capital with the highest and lowest rental growth and the average advertised rent as of October 2023.
It’s also worth getting professional financial advice whether you’re looking for tax relief or a mortgage.
Unbiased can connect you to a local financial adviser, mortgage broker or accountant.
5 areas in London with the highest rental growth
Here are the areas in the city that have benefitted from soaring rental growth over the last year.
| Area | Annual growth in asking rents | Average advertised rent* |
|---|---|---|
| Hillingdon | 23% | £1,970 |
| Newham | 20% | £2,171 |
| Harrow | 19% | £2,206 |
| Redbridge | 18% | £2,056 |
| Barking and Dagenham | 18% | £1,826 |
* As of October 2023
5 areas in London with falling rents
Below are the areas in the city that have suffered a decline in asking rents.
| Area | Annual fall in asking rents | Average advertised rent* |
|---|---|---|
| Kentish Town | 12% | £2,799 |
| Richmond | 11% | £3,531 |
| Muswell Hill | 10% | £2,759 |
| Camden | 4% | £4,292 |
| Canary Wharf | 1% | £2,920 |
* As of October 2023
Financial advice is essential whether you’re planning on renting or buying a property.
Unbiased can connect you with a local adviser who’ll look at your circumstances and recommend the best course of action.
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