London housing costs: What you really pay to live in the city

When people talk about London housing costs, the total price of renting or buying a place to live in London, including rent, deposits, bills, and hidden fees. Also known as London accommodation expenses, it’s not just about the monthly rent—it’s what happens after you sign the lease. You’re paying for a shoebox in Zone 2, a shared room with no storage, or a flat where the landlord charges £50 extra for a dishwasher. And if you’re a student, a young professional, or a family trying to get by, you’re probably already stressed about it.

Rent in London, the amount paid monthly to live in a property, typically paid in advance and often requiring a deposit equal to five weeks’ rent. In 2025, a one-bedroom flat in Zone 3 averages £1,800. In Zone 1? Try £2,500 and up. That’s before council tax, water, broadband, and electricity. Many people spend over half their income just on housing. Even with a decent salary, you’re choosing between groceries and a proper heater. The housing crisis London, a long-term shortage of affordable homes leading to inflated prices, long waiting lists, and unstable tenancies. isn’t a headline—it’s your monthly budget.

It’s not just about location. A lot of people end up in places they can’t afford because they’re desperate. You’ll find students living in basements in Croydon, nurses sharing beds in Walthamstow, and teachers commuting two hours because they can’t find anything under £1,500. Some rely on family help. Others take on second jobs. A few lucky ones get social housing—but the waiting list is years long. And if you’re on a visa or don’t have a UK credit history? Good luck finding a landlord who’ll take you.

What you won’t see in ads are the hidden costs: £300 deposit fees, £150 for a reference check, £50 for cleaning after you leave. Some landlords charge for every repair—even a broken lightbulb. And if you’re on a six-month tenancy? You’re always one month away from being asked to leave. There’s no security, no stability, just a constant scramble to find the next place before your deposit gets stolen.

But it’s not all doom. Some people are finding ways to make it work. Shared houses in South London, co-living spaces with all bills included, even moving to places like Barking or Dartford where rent is half the price and trains run every 10 minutes. There are also rent-to-own schemes, housing cooperatives, and local councils offering help to first-time renters. It’s not easy, but it’s possible—if you know where to look.

Below, you’ll find real stories, budget breakdowns, and practical tips from people who’ve been there. From student budgets to families squeezing into one-bedroom flats, you’ll see exactly how people survive—and sometimes even thrive—despite the cost. No theory. No fluff. Just what it actually takes to live in London today.