London’s rental demand is supported by rising income
Latest studies by Benham and Reeves show that while renting in London is expensive, the pressure on tenants is beginning to reduce as earnings rise across much of the capital. Our latest analysis compares average monthly salaries with average monthly rental costs to assess how much income tenants are typically spending on housing.
Across the capital, average monthly income stands at £4,586, while the average monthly rent is £2,268. This indicates that tenants currently spend approximately 49.5% of their income on housing expenses. Although this percentage is higher, it represents an improvement relative to the figures in 2024.
Areas where rent places the greatest strain on income
| Borough | Est 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% |
Affordability pressure remains most pronounced in certain boroughs. For instance, in Hackney, rent now takes up more than 60% of average earnings; tenants in Haringey, Barking & Dagenham and Ealing are spending more than half of their income on housing. At the more affordable end, areas like Bromley, Richmond upon Thames and Wandsworth benefit from stronger average earnings, thus reducing the proportion of income required to cover rent despite higher headline rental values.
How has affordability changed 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 data on average salary.
Westminster, Islington and Kensington were removed due to a lack of salary data for the year 2024.
Over the past year, steady improvements have been recorded in areas such as Wandsworth, Camden and Harrow; driven by factors like faster wage growth and, in some cases, stabilising rents. However, affordability has dipped in many boroughs. Ealing shows the largest hike in the share of income spent on rent, followed by Haringey, Bexley, Richmond upon Thames and Enfield.
What does this mean for Hong Kong investors?
For Hong Kong investors, the above data indicate a gradual stabilisation in London’s rental market. While rents are high, rising incomes boost long-term rental demand. Markets in which earnings grow at a pace consistent with rental levels are more sustainable and pose lower affordability risk over time. These figures further underscore the importance of selecting the appropriate borough. Areas supported by strong employment bases and income growth are better positioned to maintain consistent occupancy and rental stability.
Benham and Reeves established its Hong Kong SAR office in 1995 to offer complete support to local buyers seeking the best London opportunities. Our services also cater to sellers and landlords across Hong Kong SAR, China, Taiwan, Macau and Japan. Our multi-lingual team offers assistance with purchase, sale, lettings, management, legal and mortgage introductions.
Get in touch with Benham and Reeves Hong Kong office today for experienced guidance on buying, selling or letting a London property.
About the Author
With over 60 years of experience in London market, Benham and Reeves offers a comprehensive one-stop service which includes London property sales (purchase and selling) and full letting and management services to investors. Benham and Reeves Hong Kong SAR office was established in 1995 to provide real estate agency services to Hong Kong buyers, sellers and landlords in regards to all their London property needs.View all posts by Benham and Reeves
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