Average rents in London have just fallen for a fourth consecutive quarter - dropping by 2% from £1,015 in Q4 2023 to £993 per month in Q4 2024 - according to data from flatshare site SpareRoom.
While there's no such thing as a bargain in the capital, where could renters direct their searches if they want to find a good deal? And which areas are rising fastest and should be avoided?
The table below shows the top 20 areas where room rents dropped by more than 2% in the past year, and it includes some very desirable postcodes:
| London Postcode District | Area | Average rent Q4 2024 | Average rent Q4 2023 | % Change | |
|---|---|---|---|---|---|
| 1 | N9 | Lower Edmonton | £780 | £905 | -13.7 |
| 2 | SW1 | Westminster, Belgravia, Pimlico, Victoria | £1,244 | £1,425 | -12.7 |
| 3 | SE21 | Dulwich (includes West Dulwich) | £879 | £975 | -9.9 |
| 4 | SW3 | Chelsea, Brompton | £1,488 | £1,632 | -8.8 |
| 5 | E8 | Hackney, Dalston | £1,037 | £1,136 | -8.7 |
| 6 | SE12 | Lee (also covers Grove Park) | £822 | £893 | -7.9 |
| 7 | E12 | Manor Park | £770 | £835 | -7.8 |
| 8 | SE22 | East Dulwich | £885 | £956 | -7.5 |
| 9 | N14 | Southgate | £842 | £909 | -7.3 |
| 10 | SW15 | Putney (also covers Roehampton) | £892 | £961 | -7.2 |
| 11 | SW13 | Barnes, Castelnau | £808 | £869 | -7 |
| 12 | SW7 | South Kensington | £1,601 | £1,722 | -7 |
| 13 | W5 | Ealing | £930 | £995 | -6.5 |
| 14 | SE3 | Blackheath, Westcombe Park (also covers Kidbrooke) | £901 | £959 | -6.1 |
| 15 | SE2 | Abbey Wood (includes Thamesmead South) | £760 | £806 | -5.7 |
| 16 | NW7 | Mill Hill | £821 | £869 | -5.6 |
| 17 | SW19 | Wimbledon (also covers Merton (Town) and Collier's Wood) | £924 | £977 | -5.4 |
| 18 | N15 | South Tottenham, Seven Sisters | £869 | £914 | -4.9 |
| 19 | N8 | Hornsey (also covers Crouch End) | £884 | £930 | -4.9 |
| 20 | SE13 | Lewisham (also covers Hither Green) | £897 | £942 | -4.7 |
Data source: SpareRoom quarterly rental data
At the other end of the scale, this table shows areas where rents have bucked the trend and increased most, in these cases by more than 3%:
| London Postcode District | Area | Average rent Q4 2024 | Average rent Q4 2023 | % Change | |
|---|---|---|---|---|---|
| 1 | SE23 | Forest Hill | £859 | £760 | 13 |
| 2 | N10 | Muswell Hill | £980 | £875 | 12 |
| 3 | SE27 | West Norwood, Tulse Hill | £935 | £859 | 8.8 |
| 4 | N12 | North Finchley, Woodside Park | £921 | £852 | 8 |
| 5 | N22 | Wood Green, Alexandra Palace | £869 | £815 | 6.6 |
| 6 | N21 | Winchmore Hill | £853 | £803 | 6.3 |
| 7 | SE20 | Anerley (also covers Penge) | £890 | £839 | 6 |
| 8 | E20 | Olympic Park, and parts of Stratford, Homerton, Leyton, Bow | £1,222 | £1,155 | 5.9 |
| 9 | NW8 | St John's Wood | £1,238 | £1,170 | 5.8 |
| 10 | N18 | Upper Edmonton | £822 | £781 | 5.3 |
| 11 | SE19 | Crystal Palace, Norwood (central Norwood: Upper Norwood and Norwood New Town) | £862 | £820 | 5.1 |
| 12 | W7 | Hanwell | £901 | £859 | 4.8 |
| 13 | SE14 | New Cross (also covers New Cross Gate) | £961 | £917 | 4.8 |
| 14 | N6 | Highgate | £1,134 | £1,083 | 4.7 |
| 15 | NW9 | The Hyde (also covers Kingsbury & Colindale) | £925 | £886 | 4.4 |
| 16 | SE8 | Deptford | £989 | £948 | 4.4 |
| 17 | N17 | Tottenham | £884 | £849 | 4.1 |
| 18 | SE5 | Camberwell, Denmark Hill, and Peckham | £941 | £909 | 3.6 |
| 19 | W6 | Fulham, Hammersmith, Ravenscourt Park | £1,076 | £1,042 | 3.2 |
| 20 | E18 | Woodford, South Woodford | £786 | £762 | 3.2 |
Data source: SpareRoom quarterly rental data
Matt Hutchinson, director at SpareRoom, comments: “Rooms rents in the capital have just dropped for a fourth consecutive quarter. While that doesn't mean London rents are affordable, some areas are seeing sharper corrections, which could help focus your search, or arm you with greater negotiating powers.
“Meanwhile, eight of the top 10 biggest risers have below-average rents for London. Because demand is pushing rents up fast in those places, which include Forest Hill, Muswell HIll and Anerley, get in there quick if you've got your sights set on living here.
“If you're flat hunting and affordability is your highest priority, consider ads posted by homeowners looking for lodgers. In London, lodging is on average 17% cheaper than renting from a live-out landlord, though the terms are different - so be sure to weigh up the pros and cons of being a tenant versus a lodger first.”
See current average rents for every postcode area in London here.