10 Cheapest Places to Live in London
London is a city full of endless opportunities.
Whether you want to live here to soak up the history, attend one of its prestigious universities or are looking to further your career, there are so many reasons why London is so appealing to so many.
Around 40% of people living in England’s Capital city are actually from other countries, furthering its eclectic allure.
However, as many of us are aware, living in London often comes with a hefty price tag, particularly in more central areas.
But fear not; affordable living in London is possible, you just need to know where to look!
This guide will delve into the most budget-friendly neighbourhoods in London, ensuring you can enjoy life in the city without breaking the bank.
London’s diverse boroughs vary vastly, from bustling urban environments to serene tree-lined suburban settings, meaning there is an area for everyone to call home.
The key to finding an affordable place to live is to look beyond the pricey central area and explore the outer boroughs, which offer a good mix of lower housing costs, green spaces, and excellent transport links to the city centre.
Let’s embark on this journey to discover the most economical areas to live in London and explore what it would cost to rent or own a property there.
The average house and rental costs used in our guide are based on the latest Office for National Statistics data.
1. Barking and Dagenham
Barking and Dagenham tops our list of cheapest places to live in London.
Located in East London, Barking and Dagenham offer the lowest property prices you will find in the capital.
This budget-friendly area is well-connected to central London via the District and Hammersmith & City lines, allowing for quick and easy access to the busier centre for both work and pleasure.
Up-and-coming Barking and Dagenham is also known for its diverse community and abundant green spaces, making it a popular choice for families.
The borough offers a variety of housing options, from modern apartments to more traditional homes, making it an appealing spot for a variety of buyers with different needs.
In this area, you can combine great connectivity with the ability to own and rent a home for much less than you can in more central London locations.
- The average cost of a home in Barking and Dagenham is £338,000
- The average rent is £1,434 per month
- The average price paid for a first-time buyer home is £319,000
2. Newham
Newham provides excellent living costs while still maintaining great connectivity.
Newham, located in East London just north of the Thames and neighbouring Greenwich, Hackney, and Tower Hamlets, has transformed remarkably in recent years.
Once known for its industrial decline, Newham has experienced a rebirth, particularly due to the redevelopment of the Docklands and the investments the area saw leading up to the 2012 Olympics.
These changes have revitalised the borough, making it a highly desirable place to live.
Due to its convenient location, students from the nearby University of East London (UOEL) find Newham particularly attractive, with student room lets being abundant due to the proximity to the UOEL.
For those looking to purchase a home, Newham provides several help-to-buy schemes aimed at first-time buyers, facilitating easier access to homeownership.
With ongoing developments and improvements to the borough’s amenities, living in Newham ensures a dynamic and appealing living environment.
Alongside its strategic location and affordability, Newham continues to draw a diverse range of residents, solidifying its status as one of East London’s most promising areas, made all the more appealing thanks to its affordability.
- The average cost of a home in Newham is £338,000
- The average rent is £1,707 per month
- The average price paid for a first-time buyer home is £379,000
3. Croydon
Croydon is another top choice for those looking to live in London on a budget.
As one of the largest commercial districts outside of Central London, Croydon promises residents a bustling urban environment while maintaining lower living costs than more central areas.
Like many locations already mentioned, Croydon is well-served by trains and trams, offering easy access to central London, some services take as little as 15 minutes!
Educationally, Croydon has a variety of schools, including some highly rated state and independent schools, which is a major draw for those moving to this area with children.
Residents can also access a diverse range of amenities and services, including numerous restaurants and shopping options.
The Whitgift Centre and Westfield Shopping Centre are both close to Croydon, providing an extensive shopping experience for their visitors.
Overall, Croydon’s affordable living costs, excellent transport connections, and range of amenities make it a highly attractive and good value option for those looking to live in London on a budget.
- The average cost of a home in Croydon is £393,000
- The average rent is £1,422 per month
- The average price paid for a first-time buyer home £330,000
4. Bexley
Bexley offers excellent amenities and transport links.
Situated in Southeast London, Bexley is a family-friendly area with excellent schools and over 100 parks and green spaces, making it ideal for those who are moving with children or enjoy access to a range of outdoor activities.
Public transport in Bexley is affordable and convenient, with regular train services to central London ensuring that commuting is both easy and economical.
When you live in Bexley, you won’t need to head into the heart of the Capital to shop.
Bluewater Shopping Centre, one of the UK’s most recognisable shopping locations, is a quick hop away and is packed with 330 stores, from budget-friendly Primark to high-end designer boutiques.
Bexley is an attractive option for those looking to save money while living in the capital whilst not forfeiting the benefits of life in the UK’s largest city.
- The average cost of a home in Bexley is £409,000
- The average rent is £1,322 per month
- The average price paid for a first-time buyer home £364,000
5. Havering
Havering is perfect for those seeking a more relaxed lifestyle without breaking the bank.
Havering in East London offers a suburban feeling location coupled with plenty of historical sites right on your doorstep.
The borough is a neighbour to Bexley and Barking & Dagenham and also offers more affordable housing options that many other parts of London.
This easternmost borough of London is home to vast countryside and parkland, providing residents with a range of free activities and a wonderful environment to call home.
In Bedfords Park, you can spot wild deer, explore the historical village of Havering-atte-Bower, which dates back to the Anglo-Saxon era, or browse the 770-year-old Romford Market with its hundreds of stalls.
Havering provides a relaxed lifestyle close to central London with plenty to see and do locally.
- The average cost of a home in Sutton is £412,000
- The average rent is £1,150 per month
- The average price paid for a first-time buyer home £347,000
6. Sutton
Sutton is a great area for families on a budget.
Known for its strong educational institutions and eco-friendly initiatives, Sutton is a particularly great place for families searching for a place to call home in London without breaking the bank.
As an outer south London borough, Sutton enjoys not only close proximity to central London but also the serenity of Surrey and even boasts 12 Green Flag Awarded parks.
Most Sutton residents are now just a short distance from an award-winning green space and all the proven health and social benefits they bring.
Home to almost 200,000 residents, Sutton boasts a wide range of factors that underpin its high desirability as a place to live and work.
Situated in Zone 5, Sutton is less than 30 minutes by train from central London, and south and southwest London are also easily accessible by public transport.
- The average cost of a home in Sutton is £433,000
- The average rent is £1,439 per month
- The average price paid for a first-time buyer home £362,000
7. Hillingdon
Hillingdon is London’s second largest borough.
Cost-effective Hillingdon, London’s second-largest borough, stretches along the city’s western perimeter.
Home to Brunel University, the picturesque Ruislip Lido with its sandy beaches, and the ever busy Heathrow Airport, Hillingdon offers the perfect blend of urban and natural attractions.
There is truly something for everyone to enjoy in Hillingdon!
The borough is home to the historic Grand Union Canal, the heritage-rich Manor Farm, and the expansive Ruislip Woods.
This 726-acre national nature reserve hosts various events, including a budget-friendly £2 guided bat walk!
The annual festival held here showcases the regions diverse attractions such as bird of prey displays and the thrilling lumberjack sports team, the Welsh Axemen.
Living in Hillingdon provides residents with educational and recreational opportunities while also benefiting from some of the most affordable property prices in London.
- The average cost of a home in Hillingdon is £443,000
- The average rent is £1,419 per month
- The average price paid for a first-time buyer home £369,000
8. Lewisham
Lewisham has seen some major investment in recent years, improving connectivity massively.
Lewisham, a South London borough, offers a variety of housing options, catering to a range of different budgets.
The area has experienced significant regeneration over the past few decades, enhancing its appeal without losing the unique character that makes Lewisham a great place to live.
Lewisham’s expansive commercial sector in the south-eastern part of London provides residents with plenty of local job opportunities, reducing the need to commute into the city centre.
However, if you do work in the city, it’s just a quick and easy 20-minute train ride away, in fact, Lewisham is a major hub in South London so you never have to wait too long for a train into the city centre.
Many people are moving to Lewisham to escape the high costs of inner-city living and find great value in the borough’s reasonably priced properties.
While some high-end homes are still on the market, the variety of different property styles and prices ensures options for a range of buyers.
Investing in Lewisham is a wise choice, with the area’s continued development and regeneration promising a bright future.
The blend of affordability, local amenities, and transport links makes Lewisham a compelling choice for new residents.
- The average cost of a home in Lewisham is £449,000
- The average rent is £1,658 per month
- The average price paid for a first-time buyer home £388,000
9. Waltham Forest
Waltham Forest is an affordable choice for those who value a good balance of urban and rural living.
The borough of Waltham Forest encompasses popular neighbourhoods such as Walthamstow, Leyton, and Chingford, all of which are well-served by the London Underground and Overground trains.
True to its name, Waltham Forest offers residents an array of green spaces.
In the north, Chingford is home to the vast Epping Forest, while the west features the serene Walthamstow Wetlands, offering beautiful outdoor retreats for anyone living in the area.
Properties near these green spaces tend to command higher prices, but there are plenty of affordable options within the borough’s centre.
Like many areas of the capital, Waltham Forest has also seen significant new development, which has provided buyers with opportunities to take advantage of a range of affordable ownership schemes.
Often detailed on the Waltham Forest Council website, these initiatives make homeownership more accessible to a wider range of price-conscious people.
Waltham Forest’s blend of affordability, green spaces, and strong transport links make it a prime location, especially suitable for those seeking a balanced lifestyle close to the heart of London.
- The average cost of a home in Waltham Forest is £498,000
- The average rent is £1,601 per month
- The average price paid for a first-time buyer home £471,000
10. Enfield
Enfield offers great transport links into the heart of London whilst maintaining lower prices.
Enfield, London’s northernmost borough, offers not only affordable living costs but also excellent connectivity, ensuring you’re never more than an hour from the city centre.
Residents benefit from living in Transport for London’s Zone 5, which provides more affordable tube fares than many other boroughs.
Enfield boasts an array of beautiful green spaces, such as the picturesque Forty Hall estate and Hilly Fields Park, giving locals plenty of opportunities to enjoy the outdoors.
These parks provide a peaceful retreat from the urban hustle, perfect for leisurely strolls, picnics, and family outings.
The borough is also known for its vibrant Turkish and Greek communities, especially in Southgate.
This cultural richness is reflected in the area’s many independent restaurants and cafes, where you can savour delicious cuisine at reasonable prices.
These dining spots offer a more affordable alternative to the typically high costs you will find in central London, making Enfield an excellent place for food enthusiasts.
Overall, Enfield combines affordable living, excellent transport links, and a wealth of cultural and recreational amenities, making it a top choice for those seeking value for money and quality of life in the Capital.
- The average cost of a home in Enfield is £426,000
- The average rent is £1,552 per month
- The average price paid for a first-time buyer home £371,000
There are a number of steps you can take to reduce the cost of purchasing a home in London.
Finding an affordable home in London is undoubtedly challenging but it is a far from impossible task.
Now that you are armed with a list of 10 of the cheapest places to live, its time to start planning your affordable move in the capital!
With strategic planning and patience, you can make your way into the London property market, even if you don’t earn a small fortune.
Here are some strategies you can employ to help you on your journey.
Develop a Long-Term Plan
Real estate is a reliable investment.
While the market fluctuates, property values tend to appreciate over the long term.
Being patient and considering property a long-term investment can yield substantial returns.
Invest in Property for the Future
Real estate is a reliable investment.
While the market fluctuates, property values tend to appreciate over the long term.
Being patient and considering property a long-term investment can yield substantial returns.
Choose Your Location Wisely
Location significantly impacts property prices.
Opting for areas further from the city centre can provide more affordable options and a stepping stone into the property market.
Once you’re on the ladder, moving closer to central London becomes more feasible.
Consider living in an upcoming area; property prices are sure to rise, making you a tidy profit which you can put towards your next purchase.
Consider a Renovation Project
Buying a property that needs renovation can be an excellent way to build equity.
Adding an extra bedroom, converting a loft, or upgrading the kitchen and bathroom can substantially increase your home’s value.
Enhancing curb appeal and updating the garden are also worthwhile investments.
Renovations require time, money, and tenacity but can quickly boost property value.
For more tips on increasing your home’s value, check out Bankrate’s guide.
Shared ownership schemes offered by local housing associations allow you to purchase a portion of a property and pay rent on the rest.
This method has become more popular and can make homeownership more accessible.
For detailed information, check out Halifax’s guide on shared ownership mortgages.
Attend Property Auctions
Property auctions can offer lower prices, though they come with risks and require thorough research.
Auctions can be a swift way to acquire property if you have some cash ready and can secure a mortgage for auctioned properties.
For advice on buying at auctions, visit Zoopla’s auction guide.
By following these strategies, you can navigate the challenging London property market and find a home that fits your budget and future plans.
Considering a Move to a Budget-Friendly Location in London?
If you’re considering relocating to England’s dynamic capital, you’re in for an exciting journey.
From charming suburbs to bustling city areas, there are numerous affordable neighbourhoods in London that might catch your eye.
No matter which area you choose, White & Company is here to help you transport your personal belongings.
Start planning your dream move today with our expert London House Removals service.
Our industry-leading removals services are supported by memberships in prestigious organisations such as the BAR (British Association of Removers), ensuring a move with us is of the highest level!
Additionally, we can offer you our video survey service.
This innovative technology allows us to conduct remote removal surveys, gathering all the necessary details for your move from the comfort of your home.
Don’t hesitate to contact us or fill out our quick quote form to see how we can help make your move to London seamless and stress-free.
Max is a seasoned writer and blogger in the real estate and home moving sectors, as well as a knowledgeable source of information for expatriates living and working abroad. His detailed insights have helped thousands of people move and live abroad with greater simplicity and ease.
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