{"id":20723,"date":"2026-02-11T09:36:02","date_gmt":"2026-02-11T09:36:02","guid":{"rendered":"https:\/\/www.benhams.com.my\/news\/?p=20723"},"modified":"2026-02-11T09:39:39","modified_gmt":"2026-02-11T09:39:39","slug":"london-rental-affordability-improves-as-income-grows","status":"publish","type":"post","link":"https:\/\/www.benhams.com.my\/news\/property-market-updates\/london-rental-affordability-improves-as-income-grows\/","title":{"rendered":"London rental affordability improves as income grows"},"content":{"rendered":"

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 \u00a34,586, while the average rent is \u00a32,268. This figure indicates that tenants are spending approximately 49.5% of their income on accommodation; while still high, it marks an improvement over 2024.<\/p>\n

\"London<\/p>\n

Areas where rent places the greatest strain on income (2025)<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Borough<\/strong><\/th>\nAverage Monthly Salary
\n(\u00a3)<\/strong><\/th>\n		Average Monthly Rent
\n(\u00a3)<\/strong><\/th>\n		% of Income Spent on
\nRent<\/strong><\/th>\n<\/tr>\n<\/thead>\n
Hackney<\/td>\n4,253<\/td>\n2,578<\/td>\n60.6%<\/td>\n<\/tr>\n
Haringey<\/td>\n3,749<\/td>\n2,202<\/td>\n58.7%<\/td>\n<\/tr>\n
Barking & Dagenham<\/td>\n2,952<\/td>\n1,678<\/td>\n56.8%<\/td>\n<\/tr>\n
Ealing<\/td>\n3,759<\/td>\n2,051<\/td>\n54.6%<\/td>\n<\/tr>\n
Hounslow<\/td>\n3,561<\/td>\n1,897<\/td>\n53.3%<\/td>\n<\/tr>\n
Brent<\/td>\n3,629<\/td>\n1,927<\/td>\n53.1%<\/td>\n<\/tr>\n
Newham<\/td>\n3,644<\/td>\n1,900<\/td>\n52.1%<\/td>\n<\/tr>\n
Southwark<\/td>\n4,721<\/td>\n2,374<\/td>\n50.3%<\/td>\n<\/tr>\n
Enfield<\/td>\n3,517<\/td>\n1,753<\/td>\n49.8%<\/td>\n<\/tr>\n
Lambeth<\/td>\n5,228<\/td>\n2,515<\/td>\n48.1%<\/td>\n<\/tr>\n
Tower Hamlets<\/td>\n5,026<\/td>\n2,387<\/td>\n47.5%<\/td>\n<\/tr>\n
Hammersmith & Fulham<\/td>\n5,742<\/td>\n2,702<\/td>\n47.1%<\/td>\n<\/tr>\n
Westminster<\/td>\n6,933<\/td>\n3,240<\/td>\n46.7%<\/td>\n<\/tr>\n
Waltham Forest<\/td>\n3,793<\/td>\n1,740<\/td>\n45.9%<\/td>\n<\/tr>\n
Lewisham<\/td>\n3,970<\/td>\n1,805<\/td>\n45.5%<\/td>\n<\/tr>\n
Camden<\/td>\n5,981<\/td>\n2,684<\/td>\n44.9%<\/td>\n<\/tr>\n
Redbridge<\/td>\n3,824<\/td>\n1,711<\/td>\n44.7%<\/td>\n<\/tr>\n
Barnet<\/td>\n4,347<\/td>\n1,921<\/td>\n44.2%<\/td>\n<\/tr>\n
Greenwich<\/td>\n4,404<\/td>\n1,927<\/td>\n43.8%<\/td>\n<\/tr>\n
Croydon<\/td>\n3,663<\/td>\n1,547<\/td>\n42.2%<\/td>\n<\/tr>\n
Kingston upon Thames<\/td>\n4,454<\/td>\n1,832<\/td>\n41.1%<\/td>\n<\/tr>\n
Bexley<\/td>\n3,730<\/td>\n1,530<\/td>\n41.0%<\/td>\n<\/tr>\n
Harrow<\/td>\n4,255<\/td>\n1,745<\/td>\n41.0%<\/td>\n<\/tr>\n
Havering<\/td>\n3,810<\/td>\n1,561<\/td>\n41.0%<\/td>\n<\/tr>\n
Merton<\/td>\n5,154<\/td>\n2,080<\/td>\n40.4%<\/td>\n<\/tr>\n
Sutton<\/td>\n3,852<\/td>\n1,538<\/td>\n39.9%<\/td>\n<\/tr>\n
Hillingdon<\/td>\n3,939<\/td>\n1,545<\/td>\n39.2%<\/td>\n<\/tr>\n
Islington<\/td>\n6,970<\/td>\n2,716<\/td>\n39.0%<\/td>\n<\/tr>\n
Kensington & Chelsea<\/td>\n9,517<\/td>\n3,651<\/td>\n38.4%<\/td>\n<\/tr>\n
Wandsworth<\/td>\n6,817<\/td>\n2,605<\/td>\n38.2%<\/td>\n<\/tr>\n
Richmond upon Thames<\/td>\n6,299<\/td>\n2,232<\/td>\n35.4%<\/td>\n<\/tr>\n
Bromley<\/td>\n4,910<\/td>\n1,652<\/td>\n33.6%<\/td>\n<\/tr>\n
London Average<\/td>\n4,586<\/td>\n2,268<\/td>\n49.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n
\nCity of London excluded due to lack of available salary data.\n<\/div>\n

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.<\/p>\n

Percentage of affordability change since 2024<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Borough<\/strong><\/th>\n% of Income on Rent (2024)<\/strong><\/th>\n% of Income on Rent (2025)<\/strong><\/th>\nChange<\/strong><\/th>\n<\/tr>\n<\/thead>\n
Wandsworth<\/td>\n46.9%<\/td>\n38.2%<\/td>\n-8.7%<\/td>\n<\/tr>\n
Camden<\/td>\n52.8%<\/td>\n44.9%<\/td>\n-7.9%<\/td>\n<\/tr>\n
Harrow<\/td>\n48.9%<\/td>\n41.0%<\/td>\n-7.9%<\/td>\n<\/tr>\n
Hammersmith & Fulham<\/td>\n54.9%<\/td>\n47.1%<\/td>\n-7.8%<\/td>\n<\/tr>\n
Tower Hamlets<\/td>\n53.1%<\/td>\n47.5%<\/td>\n-5.6%<\/td>\n<\/tr>\n
Hillingdon<\/td>\n44.2%<\/td>\n39.2%<\/td>\n-5.0%<\/td>\n<\/tr>\n
Merton<\/td>\n45.3%<\/td>\n40.4%<\/td>\n-4.9%<\/td>\n<\/tr>\n
Bromley<\/td>\n37.7%<\/td>\n33.6%<\/td>\n-4.1%<\/td>\n<\/tr>\n
Southwark<\/td>\n53.9%<\/td>\n50.3%<\/td>\n-3.6%<\/td>\n<\/tr>\n
Greenwich<\/td>\n46.7%<\/td>\n43.8%<\/td>\n-2.9%<\/td>\n<\/tr>\n
Brent<\/td>\n55.9%<\/td>\n53.1%<\/td>\n-2.8%<\/td>\n<\/tr>\n
Barnet<\/td>\n47.0%<\/td>\n44.2%<\/td>\n-2.8%<\/td>\n<\/tr>\n
Hounslow<\/td>\n56.0%<\/td>\n53.3%<\/td>\n-2.7%<\/td>\n<\/tr>\n
Sutton<\/td>\n42.6%<\/td>\n39.9%<\/td>\n-2.6%<\/td>\n<\/tr>\n
Newham<\/td>\n53.1%<\/td>\n52.1%<\/td>\n-1.0%<\/td>\n<\/tr>\n
Waltham Forest<\/td>\n46.7%<\/td>\n45.9%<\/td>\n-0.8%<\/td>\n<\/tr>\n
Lambeth<\/td>\n48.9%<\/td>\n48.1%<\/td>\n-0.8%<\/td>\n<\/tr>\n
Kingston upon Thames<\/td>\n41.5%<\/td>\n41.1%<\/td>\n-0.4%<\/td>\n<\/tr>\n
Barking & Dagenham<\/td>\n56.7%<\/td>\n56.8%<\/td>\n+0.1%<\/td>\n<\/tr>\n
Havering<\/td>\n40.5%<\/td>\n41.0%<\/td>\n+0.4%<\/td>\n<\/tr>\n
Croydon<\/td>\n41.3%<\/td>\n42.2%<\/td>\n+0.9%<\/td>\n<\/tr>\n
Lewisham<\/td>\n44.3%<\/td>\n45.5%<\/td>\n+1.1%<\/td>\n<\/tr>\n
Hackney<\/td>\n58.7%<\/td>\n60.6%<\/td>\n+1.9%<\/td>\n<\/tr>\n
Redbridge<\/td>\n42.8%<\/td>\n44.7%<\/td>\n+1.9%<\/td>\n<\/tr>\n
Enfield<\/td>\n47.8%<\/td>\n49.8%<\/td>\n+2.0%<\/td>\n<\/tr>\n
Richmond upon Thames<\/td>\n32.7%<\/td>\n35.4%<\/td>\n+2.7%<\/td>\n<\/tr>\n
Bexley<\/td>\n38.2%<\/td>\n41.0%<\/td>\n+2.8%<\/td>\n<\/tr>\n
Haringey<\/td>\n55.4%<\/td>\n58.7%<\/td>\n+3.3%<\/td>\n<\/tr>\n
Ealing<\/td>\n51.2%<\/td>\n54.6%<\/td>\n+3.4%<\/td>\n<\/tr>\n
London Average<\/td>\n51.8%<\/td>\n49.5%<\/td>\n-2.3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n
\nCity of London excluded due to lack of available salary data. <\/p>\n

Westminster, Islington and Kensington were excluded due to missing 2024 salary figures.\n<\/p><\/div>\n

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.<\/p>\n

What does this mean for Malaysian investors?<\/h2>\n

For discerning Malaysian buyers<\/a>, 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. <\/p>\n

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.<\/p>\n

How Benham and Reeves Malaysia can help?<\/h2>\n

Established in 2013, Benham and Reeves\u2019 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<\/a> and complete property management. <\/p>\n

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<\/a> today for a no-obligation, one-on-one consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"

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, … <\/p>\n

Continue reading “London rental affordability improves as income grows”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":20726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[941],"tags":[],"class_list":["post-20723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-market-updates"],"acf":[],"yoast_head":"\nLondon Rents vs Income: 2025 Affordability Update<\/title>\n<meta name=\"description\" content=\"New 2025 data shows London rental affordability improving as wages rise. 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