It is a truth, universally acknowledged, that London is hideously expensive for private tenants. Those who live in London hear the same chorus from friends and family who live outside the capital “Oh, I could never live in London, it’s too expensive!”. But does this assumed truth bear scrutiny?
A report by online estate agent Emoov suggests that tenants in London can significantly reduce (or even halve) their rental costs every month by moving from a location of roughly average price to the least expensive postcode in their borough, identifying a series of “bargain postcodes” which offer renters in the capital something they’re hardly used to getting… Value for money!
Of course, these ‘bargain’ postcodes are still not exactly cheap, nonetheless, they offer significant relative value for those with preferred neighbourhoods that they prefer to remain in or at least remain within reach of.
Many of the targeted areas offer far cheaper monthly rental rates than the London average which is an eye-watering (to most outside the capital) £2,002 per month. The report’s findings will be make for interesting reading to London residents who are saving to get on the property ladder but aren’t prepared to change their lifestyles to achieve this.
Adam Male, lettings director of Urban.co.uk states;
“If you’re saving to get on the property ladder, living on a budget is the best way to ultimately be able to buy. Therefore, by adjusting your rental expectations slightly and compromising on a more affordable postcode in the same borough, you not only stay close to the area you like but also have a little extra to tuck away at the end of each month,”
So, let’s take a look at these bargain postcodes…
What if you could save a small fortune without even having to leave London… Surely, you’;d think this was a pipe dream? After all, you’d be within striking distance of some of the most expensive real estate in the country including Belgravia and Mayfair!
However, tenants can expect significantly cheaper rent by moving to west London postcode of W9. Located in travel Zone 2, the Maida Vale postcode offers London’s best value for money when compared to the wider City of Westminster. Emoov’s report highlights an average monthly rent for the area of £3,303, almost 50% lower than the borough average of £6,433.
It’s a great spot to invest, too when the time comes to buy. The area holds its price really well, according to associate director of Chestertons Maida Vale Karen Davies; “Mayfair, Soho, Covent Garden are all in Westminster, with Maida Vale more of a residential area, so this probably accounts for the lower figure here.”
She further states that streets around Shirland Avenue are the most affordable in the area, while prices in prime Maida Vale and Little Venice are similar to nearby St John’s Wood.
The South West
The TW12 Hampton postcode in the South West’s Richmond-upon-Thames, was a close runner up, with the average monthly rental price of just £1,472 That’s an impressive 43% below the borough average of £2,566. The area has a lot to offer for so modest a price tag. Residents can enjoy a stroll along the Thames, go deer-spotting in Bushy Park or enjoy a train commute to Waterloo that takes just 45 minutes.
Kensington and Chelsea’s best kept secret
Such prestigious addresses may seem out of reach, but even Kensington and Chelsea have their affordable hidden gems.The North Kensington postcode of W10, just north of the Westway is the home of the Portobello Road market, as well as the Grade II-listed Trellick Tower… Believe it or not, it also contains some of Kensington and Chelsea’s cheapest housing.
Average rents here are just £2,723 a month, 40% less than in the rest of this enviable central borough.
Who says rents in London are too expensive?