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London rental affordability improves as income grows

The latest Benham and Reeves analysis indicates that although renting in London remains costly, the pressure on tenants is beginning to ease as income levels rise across most of the capital. Our latest studies compare average monthly earnings with average monthly rents to better understand the share of income tenants allocate to housing. Across London, average monthly pay stands at £4,586, while the average rent is £2,268. This figure indicates that tenants are spending approximately 49.5% of their income on accommodation; while still high, it marks an improvement over 2024.

London rental income grows

Areas where rent places the greatest strain on income (2025)

Borough Average Monthly Salary
(£)		 Average Monthly Rent
(£)		 % of Income Spent on
Rent
Hackney 4,253 2,578 60.6%
Haringey 3,749 2,202 58.7%
Barking & Dagenham 2,952 1,678 56.8%
Ealing 3,759 2,051 54.6%
Hounslow 3,561 1,897 53.3%
Brent 3,629 1,927 53.1%
Newham 3,644 1,900 52.1%
Southwark 4,721 2,374 50.3%
Enfield 3,517 1,753 49.8%
Lambeth 5,228 2,515 48.1%
Tower Hamlets 5,026 2,387 47.5%
Hammersmith & Fulham 5,742 2,702 47.1%
Westminster 6,933 3,240 46.7%
Waltham Forest 3,793 1,740 45.9%
Lewisham 3,970 1,805 45.5%
Camden 5,981 2,684 44.9%
Redbridge 3,824 1,711 44.7%
Barnet 4,347 1,921 44.2%
Greenwich 4,404 1,927 43.8%
Croydon 3,663 1,547 42.2%
Kingston upon Thames 4,454 1,832 41.1%
Bexley 3,730 1,530 41.0%
Harrow 4,255 1,745 41.0%
Havering 3,810 1,561 41.0%
Merton 5,154 2,080 40.4%
Sutton 3,852 1,538 39.9%
Hillingdon 3,939 1,545 39.2%
Islington 6,970 2,716 39.0%
Kensington & Chelsea 9,517 3,651 38.4%
Wandsworth 6,817 2,605 38.2%
Richmond upon Thames 6,299 2,232 35.4%
Bromley 4,910 1,652 33.6%
London Average 4,586 2,268 49.5%
City of London excluded due to lack of available salary data.

Affordability pressures remain most pronounced in certain boroughs; in Hackney, rent now occupies more than 60% of average earnings, while tenants in Haringey, Barking & Dagenham and Ealing are also spending more than half of their income on housing. On the other hand, Bromley, Richmond upon Thames and Wandsworth benefit from stronger average earnings, in return, reducing the share of income required to pay rent.

Percentage of affordability change since 2024

Borough % of Income on Rent (2024) % of Income on Rent (2025) Change
Wandsworth 46.9% 38.2% -8.7%
Camden 52.8% 44.9% -7.9%
Harrow 48.9% 41.0% -7.9%
Hammersmith & Fulham 54.9% 47.1% -7.8%
Tower Hamlets 53.1% 47.5% -5.6%
Hillingdon 44.2% 39.2% -5.0%
Merton 45.3% 40.4% -4.9%
Bromley 37.7% 33.6% -4.1%
Southwark 53.9% 50.3% -3.6%
Greenwich 46.7% 43.8% -2.9%
Brent 55.9% 53.1% -2.8%
Barnet 47.0% 44.2% -2.8%
Hounslow 56.0% 53.3% -2.7%
Sutton 42.6% 39.9% -2.6%
Newham 53.1% 52.1% -1.0%
Waltham Forest 46.7% 45.9% -0.8%
Lambeth 48.9% 48.1% -0.8%
Kingston upon Thames 41.5% 41.1% -0.4%
Barking & Dagenham 56.7% 56.8% +0.1%
Havering 40.5% 41.0% +0.4%
Croydon 41.3% 42.2% +0.9%
Lewisham 44.3% 45.5% +1.1%
Hackney 58.7% 60.6% +1.9%
Redbridge 42.8% 44.7% +1.9%
Enfield 47.8% 49.8% +2.0%
Richmond upon Thames 32.7% 35.4% +2.7%
Bexley 38.2% 41.0% +2.8%
Haringey 55.4% 58.7% +3.3%
Ealing 51.2% 54.6% +3.4%
London Average 51.8% 49.5% -2.3%
City of London excluded due to lack of available salary data.

Westminster, Islington and Kensington were excluded due to missing 2024 salary figures.

In the past year, the most evident improvements have been recorded in London areas like Wandsworth, Camden and Harrow. This growth is due to factors like faster wage growth and, in some cases, stabilising rents. Affordability has also deteriorated in several boroughs; Ealing shows the largest increase in the share of income spent on rent, followed by Haringey, Bexley, Richmond upon Thames and Enfield.

What does this mean for Malaysian investors?

For discerning Malaysian buyers, these data points to a robust London market with selective choices. Rather than relying on upcoming sharp rental increments, performance is increasingly tied to local employment strength, income growth and tenant affordability.

Boroughs in which earnings growth supports rental levels are better positioned to deliver steady income and lower vacancy risk in the long term. Areas that offer affordability may still perform well; however, they are more sensitive to economic or regulatory shifts. This environment requires a strategic, location-led investment approach.

How Benham and Reeves Malaysia can help?

Established in 2013, Benham and Reeves’ Kuala Lumpur offers comprehensive services to Malaysian clients investing in London property. Working in liaison with the London offices, our local team assists with market pricing, acquisition strategy, mortgage introductions and legal coordination. Post-sales, we offer continue to support investors through lettings, furnishing solutions and complete property management.

With a team fluent in English, Malay and Mandarin, Malaysian clients benefit from local support in their own time zone, combined with expert on-ground support from London. Contact us today for a no-obligation, one-on-one consultation.

About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 13 international offices.

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