Finding the best neighborhoods in London for your budget will likely take you to the more affordable outer boroughs. These neighborhoods tend to have lower-cost housing, good public transit, and nearby services, such as grocery stores and schools.
It’s why these neighborhoods are the perfect combination of affordable and small town beauty. That’s precisely why students, young professionals, and families all enjoy living there!
These diverse neighborhoods hum with colorful markets and welcoming community parks. They provide excellent value in terms of living, and an authentic bite of London’s cultural melting pot.
Just moved to the city? Or perhaps you just want to reduce your rent expenses? These locations allow you to see the best of London without spending a fortune.
Here are the cheapest neighborhoods in London, from most expensive to cheapest, that are worth looking into for your next move.
1. Barking

Barking is the most affordable borough for homeownership in Greater London. With an average home price of only $438,000, it’s one of the most affordable options on the list. This pricing provides you unlimited, practical access to the London housing market. It seems quite different from many other neighborhoods around the city. It’s $55,000 above the average home price in England.
The area’s industrial heritage and strong community pride create a unique and inviting atmosphere. Barking & Dagenham, the easternmost borough of southeastern Greater London, has a rich history tied to its industries. These industries have shaped the neighborhoods and fostered a close community orientation, making it an appealing option for those seeking affordable rent in a vibrant urban area.
Barking boasts spacious living, with a lower population density than most London boroughs, providing ample green spaces for outdoor activities and a more relaxed environment. For renters, Barking is particularly attractive to families and young professionals on both sides of the Thames. However, it’s important to note that rental prices in this area are 66% more than the national average, reflecting the demand for housing in such a desirable location.
Despite the higher costs, Barking offers numerous rental options that effectively balance affordability with direct access to Central London. On average, renters pay $6,900 more per year than the rest of England, but the ease of commuting and access to opportunities make it worthwhile. Barking’s public transport is another key advantage, with services through the Hammersmith & City and District lines simplifying commutes.
As well as good National Rail routes into Fenchurch Street, you have access to the Elizabeth Line at Chadwell Heath. All of these rail links connect directly to London Victoria, London Bridge, St Pancras and Clapham Junction. At the same time, Heathrow Airport and Brunel University are major engines for the local economy. Education is another highlight, with 67% of pupils achieving strong GCSE results in English and Math, ranking it second-best in London.
2. Bexleyheath

Bexleyheath stands out as a cost-effective community. With an average house price around $573,000, it provides much more affordable housing stock than most of London. One of the great advantages of Bexleyheath is that property prices are very reasonable. It’s located within the Bexley borough, one of the most affordable boroughs in London.
With an average rent of $1,525 per month, renting here is an affordable option for homeowners and renters to move in the area.
Bexleyheath offers a peaceful commuter town vibe, with an abundance of parks and gardens. It’s the ideal community for young families or professionals looking to escape the busy, urban lifestyle and congestion of the core. This region is home to numerous pristine parks, ideal for quiet walks or lively summer afternoons with family and friends.
Families tend to love the mix of quiet suburban life and ability to live near local amenities. Big supermarkets like Tesco, Sainsbury’s, and Morrisons meet everyday shopping needs, while local restaurants, including the popular Cypriot spot Nissi, add variety to dining options.
For families, Bexleyheath passes the test of education with a range of quality schools. The neighborhood is well-situated to facilitate family life, and the abundance of parks and playgrounds makes it an even more attractive option. Nearby shopping centers help make errands or a fun day out easier and more enjoyable.
Bexleyheath will be an attractive place for commuters with convenient transport links. Fast rail services on the North Kent, Bexleyheath and Dartford Loop lines offer a quick connection to Central London. The region has traditionally had little to no access to the Central line.
It does connect quite nicely to the Elizabeth Line via TfL Rail, which will be folded in shortly. This arrangement allows for an easy commute to work or play in the bustling metropolis while enjoying all the benefits of suburban life.
3. Walthamstow

Next up is Walthamstow, an area known for its community spirit and cultural melting pot. It’s a true melting pot indeed, where locals of all races, creeds, and colors coexist, making for a vivacious and inclusive environment. From art exhibits at the William Morris Gallery to the lively events hosted by local groups, there’s always something happening here that reflects the area’s creative spirit.
It’s the kind of place where you’d experience a culture of cultures coming together in a smooth ol’ stew, that really makes it special.
Housing in Walthamstow is remarkably more affordable than in much of inner London. With property prices staying reasonable, it’s a popular choice for those wanting to live in London without exceeding their budget. In 2012, you would have paid a median of $305,000 for a three-bedroom home.
In retrospect, that price was a shocking bargain for buyers at the time! Since then, prices have only climbed higher. Though they lack the same charm, they’re still a budget-friendly alternative, with good value of their own for the city’s closeness and amenities.
The neighborhood’s appeal includes its farmers’ markets and cool local markets and indie shops. Walthamstow Market is the longest street market in Europe. It’s a busy, bustling, vibrant center where you can buy anything from local fruits and vegetables to handmade crafts.
Independent boutiques and cafes spill out onto the sidewalks, giving the borough a cozy, intimately local vibe. It’s a lovely place to grab unique new wares, or just soak up the mellow atmosphere.
Outdoor enthusiasts will fall in love with the nearly 50 parks and green spaces. Nearby Lloyd Park and Walthamstow Wetlands offer lots of space for relaxation, walking or running. As well as the DLR connection, being on the Overground, Walthamstow is a commuter’s dream, balancing accessibility and affordability with remarkable ease.
The current rental inflation rate here at 5.4% is lower than the average across London, which makes Walthamstow all the more attractive to renters.
4. Tottenham

Tottenham is one of the most affordable neighbourhoods in London, with average home prices of $530,000, providing great opportunities for those on a budget. All of these options are available to first-time home buyers. They’re spoiled for choice with lovely Victorian terraces or swanky new-build flats – and their wallets don’t take a hit for it.
This diversity creates an attractive environment for both young professionals and families to settle down in a quiet, convenient suburb. The neighborhood is experiencing a wave of major new regeneration projects that are increasing property values while enhancing local amenities.
These advances, including improvements to previously underutilized community buildings and open spaces, are fostering a more lively and attractive community. Long-term, this improves quality of life overall, while serving as a wise investment for homeowners.
Tottenham also features a dynamic dining and entertainment scene that reflects its multicultural community. You’ll find just about everything from jerk Caribbean joints to Turkish kebab shops and hipster coffee bars.
For entertainment, cultural hotspots and local pubs cater to a range of tastes, while nearby parks like Downhills Park provide green spaces to unwind. These amenities combine to create a vibrant yet family-friendly community, drawing people of all ages.
The superb transport connections are the third biggest draw for people moving to the borough. You can zip into central London in 20 minutes on the London Overground and other rail links.
It’s only a moderate commute of under six miles! Public transport into the city from here is frequent, fast and reliable, perfect for time-poor professionals commuting between suburban home and inner-city office.
Tottenham has a wonderful mix of schools. Both Crowland Primary and Belmont Junior have received ‘Good’ or ‘Outstanding’ ratings from Ofsted!
The area’s safety record and community feel further add to its appeal, making it a well-rounded option for those seeking value without sacrificing quality of life.
5. Deptford

Deptford has some of the most affordable housing in London, attracting renters and buyers, and fuelling the gentrification process. With an average rent of $1,550 per month, it’s an attractive option for renters seeking affordable rent. In neighboring Greenwich, prices frequently skyrocket even more. The region presents home buyers of all ages an alluring mix of historic neighborhoods and new construction in this vibrant area of South London.
One particularly good example is Neptune Wharf, a positive new residential development situated opposite Deptford Park. This innovative, well-designed space features landscaped courtyards and podium gardens that provide convenient, accessible living with a healthy dose of nature, making it a perfect choice for those looking for an affordable place to live.
Celebrated for its bohemian, alternative atmosphere, Deptford has attracted a wave of new young professionals and creatives. The streets are filled with independent galleries and studios, quickly cementing it as one of the best neighborhoods for contemporary art. This legacy of art and imagination runs long and deep through the community’s history, contributing to the appeal of living in this urban area.
For over 350 years, it prospered as a vibrant shipbuilding hub. Today, that artistic energy is still palpable, whether through a new exhibition in an alley or a community art venue, making it a unique spot in the rental market.
On top of that, living in Deptford puts you on the doorstep of more diverse local amenities than ever. The lively high street is filled with energy. Cafes, independent shops, and the renowned Deptford Market Yard add to the eclectic vibe, with the market providing everything from vintage finds to fresh food, enhancing the experience of urban living.
These conveniences add a level of vibrancy and a more walkable feel so that running daily errands or enjoying a weekend day can be just as pleasant, especially in a city known for its high rents.
Transportation is the other big ace up Deptford’s sleeve. With fantastic transport links, you’re only a matter of minutes from the heart of Central London by train or bus. The future Crossrail extension to Abbey Wood station will massively improve commuting there.
Soon, moving from place to place will be even easier for all of us. Whether you’re commuting for business or enjoying a weekend trip, traveling around the region is easy and convenient, making Deptford a prime choice in the competitive London rental market.
Conclusion
You can experience all that London has to offer without emptying your wallet. Areas such as Barking, Bexleyheath, Walthamstow, Tottenham and Deptford boast much cheaper rent but have a distinct personality to them. Each neighbourhood is filled with unique attractions, from the ever-popular St. Lawrence Market, to its parks and recreational spaces, to its burgeoning culinary landscape. These locations provide ample opportunity to experience all that London has to offer without breaking the bank.
With the right guidance, anyone can find a place that suits their budget. Fortunately, London has some hidden gems where you can have the best of both worlds — affordability and convenience. These neighborhoods show that enjoying the myriad benefits of living in one of the world’s most dynamic cities doesn’t require sacrificing value.
If you’re interested in visiting these destinations or want to find out more, get started today. Begin planning your move or visit today to discover what they can do for you.