London’s 10 most affordable neighborhoods | July

Welcome to our second installment of Rent Companion’s monthly analysis of the most affordable neighborhoods in London. Each month we take a look at the changing face of the London rental market by analysing the rental industry’s historical and live rental data.

This month, we have added average (median) Days on Market (DOM) to our analysis, while including a dynamic table at the end of the article.

Yes, we have all heard about the outrageous rental prices consuming London — but the aim of this monthly report is to find the few affordable areas left.

But since last month’s report I’ve had a few people ask me if London is getting cheaper — I mean just look at its fall in the Economists rankings! Well, don’t hold your breath for that two bedroom in SOHO on your non-finance salary — the ranking drop is due to the pound’s drop, not a price drop.

With that said, we to analyze London to find where the working class of London can afford to live. Well, we have found the answer to that very question.

About London

It’s always been the most expensive city to live in the UK and has become a staple on priciest cities in the world lists. But this analysis takes aim at the supply and demand shifts in London’s most affordable neighborhoods to find the last few affordable neighborhoods in London.

London has a metro population of nearly 14 million and a city density of 5,518/km2, creating a naturally low supply in the most desirable places. This is coupled with the natural demand of living within the city making London unaffordable for most. This is supported by the average (median) rental price for a two-bedroom flat of our top 10 London neighborhoods coming in at a staggering £4,646!

Rental Market Overview

The month-over-month supply shift seen across London was no stranger to these markets, just not to the degree we saw in the central London neighborhoods. While the top 10 most affordable neighborhoods month-over-month supply rose approximately 70%, we only witnessed a slight drop in price. This average drop of roughly -2.3% could hardly be felt to the -30% average drop seen in more expensive neighborhoods.

Even with the slight price shift, this group lost a day off of their average DOM, which as a collective is a very quick 10.5 days.

Although we had three new neighborhoods in the top 10, only one entered the top ten from a price drop. The other two were due to finding the necessary supply to join the list. It should be noted that Chingford is the only area north of the Thames, compared to the four we had in last month’s most affordable list.

It should be noted that two of the new entrants debuted as ties. The close proximity of the two to their ranked counterparts was flagged and verified as no double counting. Other than close proximity — it was noticed that the partnering markets had specific agencies pricing flats in both areas.

Summer is certainly a known time for seasonality factors in dense university populations. It’s a good time to jump into a rental if you can find something that suits you. Just remember — you won’t have long to make a decision.


This analysis was done by indexing current on-the-market properties by rent, bedrooms, and district code* 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 listing.

*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 analyzing 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 feel free to PM me on LinkedIn or through


#10 (↓2) Chingford district | E4 | £1,283/mo ↓1.0%

Chingford is our only area north of the River Thames this month. Its next northern partner, last months #9, Manor Park — #12 this month. Chingford has had some substantial supply growth the past two months but hasn’t seen its prices budge too much thus far. You can only expect so much price movement when you are already one of the cheapest areas in London.

  • Last Month’s Rank: 8
  • DOM: 14
  • Min|Avg|Max: £1,096|£1,362|£3,900
  • Population: 60.3k
  • Rentals Available: 135 | ↑136.8%

#8 (↑7) Norwood district | SE19 | £1,248/mo ↓8.8%

Norwood, the first new comer on the list — and tied with our second, Anerley, at #8 — had the largest price drop in this month’s data set (50 areas), propelling it into the top ten. If you are looking in Norwood you better act quick, as the average DOM is only a week!

  • Last Month’s Rank: 15
  • DOM: 7
  • Min|Avg|Max Rent: £997|£1,341|£1,837
  • Population: 13.7k
  • Rentals Available: 68 | ↑15.3%

#8 (∞) Anerley district | SE20 | £1,248/mo ↑4.3%

Anerley, in a tie for 8th with its real life neighbor Norwood, has similar market numbers to its twin district but only lacks supply. Even with such a large influx of properties to hit the market, it only mustered 41 live two-bedroom properties. I wouldn’t expect to see Anerley on next month’s list.

  • Last Month’s Rank: N/A (❤0 properties available)
  • DOM: 12
  • Min|Avg|Max Rent: £953|£1,248|£1,547
  • Population: 17.4k
  • Rentals Available: 41 | ↑46.4%

#7 (↓1) Sydenham district | SE26 | £1,244/mo ↓4.0%

Sydenham’s major stats were hardly changed by the uptick in supply, except that it’s Days on Market dropped considerably — roughly 80%. This is likely due to a group of new properties just hitting the market. Regardless, properties are moving fast!

  • Last Month’s Rank: 8
  • DOM: 3
  • Min|Avg|Max Rent: £997|£1,244|£1,450
  • Population: 28.4k
  • Rentals Available: 38 | ↑22.6%

#6 (↓2) Catford district | SE6 | £1,224/mo ↓1.9%

Catford dropped two spots from June’s fourth place to sixth this month, while dropping its average price by roughly £25. Certainly not the expected outcome when you drop in price, but the markets around London have experienced quite a bit of movement since June.

  • Last Month’s Rank: 4
  • DOM: 13
  • Min|Avg|Max Rent: £520|£1,363|£5,200
  • Population: 15.1k
  • Rentals Available: 54 | ↑31.7%

#5 ( — ) Lee district | SE12 | £1,220/mo ↓2.2%

Most of Lee district’s stats are unchanged from last month, except for its DOM which dropped nearly 31%.

  • Last Month’s Rank: 5
  • DOM: 9
  • Min|Avg|Max Rent:£542|£1,209|£1,395
  • Population: 14.6k
  • Rentals Available: 32 | ↑3.2%

#4 (↓2) South Norwood | SE25 | £1,159/mo ↓3.1%

South Norwood was one of the biggest offenders of this month’s supply shift, doubling its supply from last month. Although the large shift in supply didn’t equate to any meaningful price movement. This, like the other areas on the list, is due to already being one of the low-cost areas in the commuting range of central London.

  • Last Month’s Rank: 2
  • DOM: 18
  • Min|Avg|Max Rent: £825|£1,219|£1,946
  • Population: 16.5k
  • Rentals Available: 108 | ↑100.0%

#2 (∞) Abbey Wood district | SE2 | £1,148/mo ↑9.3%

Talk about a one and done candidate, Abbey Wood roughly doubled its supply and still nearly missed making the analysis by 4 properties! Remember you only need 30 two bedroom properties in your area to be a candidate. One reason may be the low 8 DOM it boasts, meaning properties don’t stick around. Interestingly enough it witnessed a major price increase! With that said, I would fully expect Abbey Wood to be left of August’s top 10.

  • Last Month’s Rank: N/A (❤0 properties available)
  • DOM: 8
  • Min|Avg|Max Rent: £923|£1,115|£1,296
  • Population: 11.4k
  • Rentals Available: 33 | ↑94.1%

#2 (↑1) Thamesmead district | SE28 | £1,148/mo ↓4.2%

Thamesmead, likely a permanent selection on this list, has the same story as many others — growth in supply, light price drop and a large drop in DOM.

  • Last Month’s Rank: 3
  • DOM: 8
  • Min|Avg|Max Rent: £949|£1,158|£1,495
  • Population: 31.8k
  • Rentals Available: 69 | ↑64.3%

#1 ( — )Eltham district | SE9 | £1,096/mo ↓6.3%

Eltham for the second month in a row barely made the supply parameters but comes on top again. Surprisingly the cheapest got even cheaper — dropping nearly £75 from its average June price. We’ll see if they can hold their spot at the top in August.

  • Last Month’s Rank: 1
  • DOM: 14
  • Min|Avg|Max Rent: £949|£1,154|£1,647
  • Population: 35.5k
  • Rentals Available: 35 | ↑12.9%


Sorry that I cannot include the interactive table on LinkedIn, but if you click on the picture you will be taken to the page that allows you to play with the data.

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