London’s rental market in 2025 remains one of the most expensive in the world.
According to new statistics released by the Office for National Statistics (ONS), average monthly rents across the capital have climbed once again—putting additional pressure on both tenants and landlords navigating an already competitive housing market.
London’s Rental Market in 2025: The Bigger Picture
Over the past year, average private rents in London increased by 7.3%, reaching £2,252 per month as of July 2025. To put this into perspective, this figure is more than double the UK inflation rate, which stood at 3.6% in June 2025.
Compared with June 2024, when the average monthly rent was £2,100, London tenants are now paying £152 more every month. This increase has been recorded across all property types—from compact studio flats to large family townhouses.
The Most Expensive Boroughs in London
Unsurprisingly, Kensington & Chelsea remains the most expensive borough for renters, with average monthly rents now at £3,616—the highest in the UK.
Other high-ranking boroughs include:
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Westminster: £3,251
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Camden: £2,804 (a rise of more than 10% year-on-year)
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Islington: £2,697
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Hammersmith & Fulham: £2,759
These figures highlight the continued demand for prime central London locations, despite steep rental costs.
Where Rent is Rising Fastest
Some boroughs have experienced particularly sharp increases:
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Hackney rents are now averaging £2,557, up 9% in the past year.
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Camden saw more than a 10% rise compared to 2024.
Such rapid growth illustrates how once “up-and-coming” areas are now firmly part of London’s high-cost rental landscape.
The Most Affordable Boroughs in London
While renting anywhere in London is costly compared to the UK average (£1,344), a few boroughs remain relatively affordable:
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Bexley: £1,485 (the cheapest in London)
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Havering: £1,522
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Sutton: £1,521
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Croydon: £1,525
Interestingly, Brent was the only borough to record a fall in rental prices, down 3.1% from 2024, now averaging £1,999 per month.
Average Rent by Borough (July 2025)
| Borough | Avg. Monthly Rent |
|---|---|
| Barking & Dagenham | £1,633 |
| Barnet | £1,872 |
| Bexley | £1,485 |
| Brent | £1,999 |
| Bromley | £1,634 |
| Camden | £2,804 |
| Croydon | £1,525 |
| Ealing | £2,041 |
| Enfield | £1,724 |
| Greenwich | £1,873 |
| Hackney | £2,557 |
| Hammersmith & Fulham | £2,759 |
| Haringey | £2,175 |
| Harrow | £1,717 |
| Havering | £1,522 |
| Hillingdon | £1,536 |
| Hounslow | £1,886 |
| Islington | £2,697 |
| Kensington & Chelsea | £3,616 |
| Kingston | £1,813 |
| Lambeth | £2,401 |
| Lewisham | £1,778 |
| Merton | £2,058 |
| Newham | £1,851 |
| Redbridge | £1,682 |
| Richmond | £2,222 |
| Southwark | £2,353 |
| Sutton | £1,521 |
| Tower Hamlets | £2,364 |
| Waltham Forest | £1,751 |
| Wandsworth | £2,519 |
| Westminster | £3,251 |
What This Means for London Renters
For tenants, the latest data underlines the challenges of finding affordable accommodation in the capital. For landlords and investors, it signals strong demand but also the importance of understanding micro-market variations between boroughs.
At Piccadilly Estates, we help clients navigate these shifts—whether you’re a landlord seeking maximum return on investment or a tenant looking for the right balance between location and affordability.
