Renters in London are spending an average of 49.5% of their monthly income on rent, though the proportion has decreased since 2024 due to wage growth outpacing rental increases, according to data from lettings and estate agent Benham and Reeves.
The analysis examined average monthly earnings against average rent across London boroughs to determine the share of income dedicated to housing costs. Average monthly earnings in the capital stand at £4,586, with average rent at £2,268.
Borough variations
The proportion of income spent on rent varies significantly across London. Hackney records the highest ratio at 60.6%, where average monthly earnings of £4,253 meet average rents of £2,578. Haringey follows at 58.7%, with Barking & Dagenham at 56.8%. Ealing stands at 54.6%, Hounslow at 53.3%, and Brent at 53.1%. Newham (52.1%), Southwark (50.3%), Enfield (49.8%) and Lambeth (48.1%) all sit near the London average.
The data indicate that rent as a proportion of income has declined by 2.3% across London since 2024. Several boroughs have experienced larger reductions. Wandsworth saw the steepest drop at 8.7%, whilst Camden and Harrow both recorded 7.9% decreases. Hammersmith & Fulham fell by 7.8% and Tower Hamlets by 5.6%.
Rising costs in some areas
However, affordability has worsened in certain boroughs. Ealing’s rent-to-income ratio increased by 3.4%, Haringey by 3.3%, Bexley by 2.8%, Richmond upon Thames by 2.7%, and Enfield by 2%.
Marc von Grundherr of Benham and Reeves stated: “There’s no question that London remains an expensive city for renters and, for many people, the cost of housing still takes up a significant share of monthly income. However, what our research clearly shows is that the situation is starting to move in the right direction… rising earnings are helping to ease some of the pressure on renters and providing a more positive outlook than we saw this time last year.”
The findings suggest that whilst London’s rental market remains challenging for tenants, wage growth is beginning to offset rental cost pressures in most areas of the capital.