London Rents vs Income: 2025 Affordability Update

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.

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

Michelle Lai

Michelle leads business development at Benham & Reeves Malaysia, supporting homeowners and investors seeking diversification and wealth growth. With strong overseas market expertise, she offers end-to-end guidance from acquisition to property management. Her international real estate experience helps clients make informed, strategic decisions aligned with their needs and long-term investment goals.

View all posts by Michelle Lai