• 01702 443 555

Supporting clients and customers for over 20 years.

Keeping you up to date

Read the latest news

The latest Gateway Group news, insights and benefits, along with wide property stories. Join our 20,000 + subscribers and sign up today!

Roof terraces in areas on London outskirts


Cost of living in the capital: Average monthly rents continue to rise in London

In some parts of London, tenants are paying as much as £500 more per month as the cost of living crisis continues.

Rents across London are rising to record highs each month, with the average monthly cost of a room now topping £1,000 per month in 44 out of 117 postcodes.

But, as The Standard reports, in five of the capital’s postcodes these increases have been even more punishing than the rest — with the average monthly cost of renting a room soaring by a third or more in just a year.

The latest data from SpareRoom showed that house sharers in these postcodes are paying hundreds of pounds extra a month than they were the previous year.

The five London neighbourhoods where rent is growing quickest:

PostcodeIncrease in average room rent in the year to Q3 2023
W8 - Kensington


NW7 - Mill Hill


SE28 - Thamesmead


N2 - East Finchley


WC2 - West End


Kensington, W8

The biggest increase was in Kensington’s W8 postcode, where monthly costs jumped by an astonishing 45 per cent in the year to Q3 2023 - an additional £509 per month, or £6,108 per year. This puts the new average room rent in the area at £1,645pcm.

Mill Hill, NW7

It is not only at the prime end of the capital’s housing market that rents have soared. NW7 (Mill Hill) saw a 38 per cent hike, according to SpareRoom, taking the postcode from within the 10 cheapest a year ago to outside the 50 cheapest in the most recent table.

The average rent is now £910pcm, a rise of £250pcm.

Thamesmead, SE28

Elsewhere, tenants were typically paying £867pcm for a room in SE28 (Thamesmead), which is 36 per cent more than 12 months earlier.

East Finchley, N2

Renters are also faced with a 36 per cent hike in costs in N2 (East Finchley) with room rents jumping from £727pcm to £986pcm.

Central London, WC2

WC2 postcodes saw a 32 per cent hike in the past year, to £1,591pcm, in no small part down the to the area seeing a spike in students from around the globe studying in the capital.

Twenty-two postcodes saw the price of a typical room rise by at least a fifth in the last year, according to the SpareRoom figures. Just 10 of 117 districts measured saw single-figure percentage growth. None saw costs drop.

South Kensington’s SW7 became the costliest place to rent in the latest period, with a typical price tag of £1,754 per month, up more than a quarter in a year.

Meanwhile the latest data showed no postcodes remained with average room rents below £750. Edmonton’s N18 district came in as the most affordable but the monthly price of a spot in a typical shared house still rose by £97 in the past year to £755.

Gateway Today will keep you posted on this with future updates.

Female Gateway employee holding folder

Let us look after your property

Call us on 01702 443 555 or contact us to arrange a chat.