London's 10 most affordable neighborhoods| June 2017

City Rental News / June 15, 2017

London has always been the most expensive city to live for Brits and has become a staple on priciest cities in the world lists. Historically rivaling New York in the United States, London has dropped from the 6th costliest city in the world to the 24th. I took a look at London’s 10 Priciest Neighborhoods recently, but that begs the question: What are the most affordable areas to live in London

When we take a look at what areas are still affordable for someone looking for a two-bedroom in London, you may be surprised to find that the pricing can be very reasonable for those looking for proximity to the London lifestyle. The two-bedroom flats in the 10 neighborhoods on the list below had an early June average of median values at £1,260!

With a metro population of nearly 14 million and a city density of 5,518/km2, London has a naturally low supply of flats in the most desirable places. This is coupled with the natural demand of living within the city, and has made London unaffordable for most – But as you can see from our June analysis there is still some affordability to live in these London neighborhoods.

Affordable London Area Rental Prices

The most obvious similarity, other than price, is the proximity to London - each area being roughly 30 mins from central London. Additionally, this list differs from our Priciest neighborhoods with its consistency in price and variability in supply - many neighborhoods fail to consistently offer more than 30 live properties at any given time in the affordable list.

This analysis was done by indexing current on-the-market properties by rent, the number of bedrooms, and district codes, and then ranking them by their medians. This allows us to lower the effect of outliers, as you will see in the descriptive statistics section for each area. Each aggregated district code must have more than 30 live properties and must be a 2-bedroom property.

A district code is the first half of a postcode (3-4 characters, e.g. BN3 or SW1E) and gives a better look at neighborhoods than postcode areas (first 1-2 characters, e.g. B or EH).

When analysing rental properties and geographic areas, we try to tailor our analysis to the audience, but this is just a fun exercise that everyone can enjoy reading. If you are interested in deeper analysis please contact us at: info@RentCompanion.com

#10 (↑2) Winchmore Hill District | N21 | £1,348/mo ↑6.8%

Starting in the #10 position is the Winchmore Hill district. For those not put off by a 25-30 minute commute to get into the city center (Winchmore Hill to King’s Cross) this is a great option. Roughly ten miles north of the city center, Winchmore has high proximity to many parks and allows owning a vehicle to be much more manageable. With plenty of supply compared to others on this list, it’s probably worth a look for those wanting an easy commute and affordable housing.

      Last Month’s Rank: 12
      Average Days on the Market: 31 days
      Min|Avg|Max: £1,192|£1,424|£6,067
      Population: 13.4k
      Rentals Available: 78 | ↑24.4%

#9 (∞) Manor Park District | E12 | £1,300/mo ↑0.3%

Manor Park district is our first of many neighborhoods that have trouble keeping their supply above our required 30 live properties, which is odd for such a populated area. Located slightly east of Forest Gate and Stratford, you can be to the Liverpool Street Station in less than 25 mins, opening up to the city’s many lines.

      Last Month’s Rank: N/A (<30 properties available)
      Average Days on the Market: 47 days
      Min|Avg|Max Rent: £997|£1,305|£1,547
      Population: 15.3k
      Rentals Available: 33 | ↓32.0%

#8 (↓4) Chingford District | E4 | £1,298/mo ↑2.9%

A regular on this list, Chingford district is our final stop northeast of London. With many historical landmarks - keynoted by Queen Elizabeth's Hunting Lodge - Chingford is one of the largest postcode districts in London. Surprisingly, for its size, it’s rental supply is very low.

      Last Month’s Rank: 4
      Average Days on the Market: 20 days
      Min|Avg|Max Rent: £494|£1,285|£1,795
      Population: 60.3k
      Rentals Available: 57 | ↑22.8%

#6 (tie) (-) East Ham District | E6 | £1,296/mo ↔0.0%

Most Londoners were likely waiting to see where the district of West Ham would land on this list. It’s position tied for 6th may not be what many expected. West Ham is one of the more diverse areas in the UK, but suffers from very high unemployment. If you like authentic ethnic culture and cuisine, the cheap rents are certainly a bonus in East Ham.

      Last Month’s Rank: 6
      Average Days on the Market: 33 days
      Min|Avg|Max Rent: £1,096|£1,292|£1,447
      Population: 76.2k
      Rentals Available: 50 | ↓16.0%

#6 (tie) (∞) Sydenham District | SE26 | £1,296/mo ↓2.1%

Sydenham district is one of the tighter markets in London and with good reason. Surrounded by many of London’s major shopping areas and a very commutable proximity to the city center, Sydenham is a perfect fit for those wanting all the London amenities without the London price.

      Last Month’s Rank: N/A (<30 properties available)
      Average Days on the Market: 12 days
      Min|Avg|Max Rent: £949|£1,282|£1,547
      Population: 28.4k
      Rentals Available: 31 | ↑55.0%

#4 (tie)(↑1) Lee District | SE12 | £1,248/mo ↓2.1%

This is another hot market with a DoM (days on market) average of 11 days. The supply is a bit low, so you would be wise to act on any reasonable rental.

      Last Month’s Rank: 5
      Average Days on the Market: 11 days
      Min|Avg|Max Rent: £1,148|£1,260|£1,495
      Population: 14.6k
      Rentals Available: 31 | ↓16.0%

#4 (tie) (↓1) Catford District | SE6 | £1,248/mo ↓0.4%

Catford district has historically had a rep for its Brutalist architecture but has recently felt the ripple effects of Lewisham's regeneration. Starting with Catford’s ground zero - Milford Towers - and will likely see quite the facelift through its town centre in the very near future.

      Last Month’s Rank: 3
      Average Days on the Market: 18 days
      Min|Avg|Max Rent: £698|£1,384|£2,817
      Population: 15.1k
      Rentals Available: 41 | ↑7.3%

#3 (↓1) Thamesmead District | SE28 | £1,198/mo ↔0.0%

Essentially built in the 1960’s, Thamesmead has had a troubled past due to poor city planning. Currently, it is a target for many development projects and private developers looking for a properly executed area regeneration.

      Last Month’s Rank: 2
      Average Days on the Market: 14 days
      Min|Avg|Max Rent: £750|£1,199|£1,500
      Population: 31.8k
      Rentals Available: 42 | ↑19.0%

#2 (↓1) South Norwood District | SE25 | £1,196/mo ↑1.3%

A commute of possibly less than 15 minutes to London Bridge Station puts South Norwood in one of the better positions for those looking for affordable proximity to London’s center. Coupled with the other southern district rejuvenation developments and short commute times, it’s surprising the flats here have such a high DoM.

      Last Month’s Rank: 2
      Average Days on the Market: 29 days
      Min|Avg|Max Rent: £949|£1,224|£1,894
      Population: 16.5k
      Rentals Available: 54 | ↑22.2%

#1 (∞) Eltham District | SE9 | £1,170/mo ↑6.8%

With historical significance, loads of open green space, and a commute under 30 minutes, Eltham district sounds too good to be true for the price! It is more of a suburban community and gives off a local loyalty sensibility, especially in support of its businesses. But when it takes you less than 30 minutes to get to downtown London, I can think of worse issues with a potential neighborhood.

      Last Month’s Rank: N/A (<30 properties available)
      Average Days on the Market: 14 days
      Min|Avg|Max Rent: £997|£1,222|£1,595
      Population: 35.5k
      Rentals Available: 31 | ↑29.2%

For most, there are not many surprises on this list. Each of the above neighborhoods is notorious throughout England and the world for their exclusivity and price tag. This makes sense as these locations have such an immediate proximity to most of London's beloved treasures and historical novelties. The real story is the month over month slide in supply, but that could be a timing issue as the analysis is for current rentals, giving the most up to date snapshot. Although the data is correct, it is still only a snapshot. Certainly, something to monitor over this month!

For our next article, we will look at the most affordable neighborhoods in London!