London Rental Prices by Borough: 2026 Forecast & Where Renters Will Pay Less

London rents are expected to rise again in 2026 — but not evenly. Some boroughs are becoming
unaffordable for the average renter, while others are emerging as strong alternatives with
improved transport, regeneration, and modern rental homes.

This comprehensive guide breaks down the 2026 rental forecast for every major London borough,
helping renters find better value and landlords plan smarter pricing strategies.

🏙️ How to use this guide

Each borough section includes:

Current average monthly rent (1-bed benchmark)
2026 forecast increase
Best areas for affordability
Transport benefits (Elizabeth Line, Tube expansions)
Renter demand outlook

Tip: Compare boroughs before renewing your lease — savings can be £200–£400/month.

📊 Quick snapshot: 2026 London rent forecast

Borough	Avg Rent (2025)	2026 Forecast	Market Outlook
Westminster	£2,900	+3–6%	Luxury, high international demand
Kensington & Chelsea	£3,300	+2–5%	Stable but costly
Camden	£2,650	+3–6%	Sharers & students to drive growth
Hackney	£2,250	+4–7%	Strong tech & creative demand
Barking & Dagenham	£1,650	+4–8%	Regeneration hotspot
Croydon	£1,650	+3–6%	Growing BTR communities

Now — let’s dive deeper borough by borough ⬇️

📍 Westminster (Zone 1)

2026 Outlook: International renters still drive demand. Extremely low availability.

Avg Rent 2025: £2,900+
Forecast Increase: +3–6%
Best Value: Paddington area (Crossrail access)
Renter Profile: Corporate + diplomatic

Recommendation: Only consider if employer subsidies apply.

📍 Kensington & Chelsea (Zone 1–2)

Luxury and stability — but not much opportunity for deals.

Avg Rent 2025: £3,300+
Forecast: +2–5%
Best Value: Earl’s Court while regeneration continues

Sharers will migrate out to Zone 2–3 alternatives.

📍 Camden (Zone 2)

Student + creative + tech mix = high turnover and intense demand.

Avg Rent 2025: £2,650
Forecast: +3–6%
Best Value: Kentish Town outskirts

Rents will stay competitive due to university proximity.

📍 Hackney (Zone 2)

One of the fastest-rising rental areas — creative workers and hybrid commuters.

Avg Rent 2025: £2,250
Forecast: +4–7%
Best Value: Lower Clapton & Homerton
Drivers: Nightlife + Overground connectivity

📍 Southwark (Zone 1–2)

Strong demand due to riverside lifestyle and office proximity.

Avg Rent: £2,350
Forecast: +4–6%
Best Value: Bermondsey edges

📍 Waltham Forest (Zone 3)

Top rising borough for affordability + young renters.

Avg Rent: £1,900
Forecast: +3–7%
Hotspot: Walthamstow — Victoria Line appeal

Expect intense demand growth.

📍 Barking & Dagenham (Zone 4–5)

Most affordable corner of London and major regeneration with new waterfront communities.

Avg Rent: £1,650
Forecast: +4–8%
Key Zone: Barking Riverside Overground expansion

Best opportunity for renters in 2026.

📍 Brent (Zones 2–4)

Wembley Park continues BTR expansion — professional renter hotspot.

Avg Rent: £2,100
Forecast: +4–6%
Value Picks: Dollis Hill, Harlesden

📍 Croydon (Zone 5–6)

Modern developments + fast trains = best value for young professionals.

Avg Rent: £1,650
Forecast: +3–6%
Transport: <15 min to London Bridge from East Croydon

Expect high rental competition.

✅ Key insights for renters

Move further east/south to save £300–£500/month
Prioritise energy-efficient buildings to lower bills
New-builds = higher rent but lower total living cost
Plan ahead — 2026 demand peaks early summer

✅ Tips for landlords to stay competitive

Highlight commute times clearly in listings
Offer deposit flexibility + fast move-ins
Show EPC rating and energy savings
High-speed Wi-Fi is no longer optional

Professional presentation is a must in 2026.

🎯 Final Word

London rents aren’t falling — but smart renters are finding value in new growth areas.
Barking & Dagenham, Waltham Forest, Brent, and Croydon offer the best mix of affordability and convenience in 2026.

Knowing the right borough could save over £4,000 per year.