- Surge in popularity for rental homes in London’s Abbey Wood and Forest Gate
- Opening of the Elizabeth Line has boasted accessibility to these areas
Renters are increasingly looking further away from major city centres, new research suggests.
For those looking in London, the areas that have seen a sharp increase in popularity during the past three years are now typically seven to 11 miles from the capital’s centre.
This means a boost in popularity in areas such as Abbey Wood, Forest Gate and Crystal Palace, where tenants can rent for significantly less than in central London.
Pictured: The ancient remains of Lesnes Abbey, the 12th century-built monastery in London’s Abbey Wood – an area that has seen a boost in popularity among renters
SpareRoom carried out the research of 1.5 million searches on its website between 2021 and 2023. The website is popular among those seeking rooms in house shares, but also includes whole properties to rent.
It suggested that the opening of London Underground‘s Elizabeth Line in May 2022 has played a major role in the new so-called ‘being out is in’ rental trend.
The Elizabeth Line serves many of the areas highlighted in the research, including Abbey Wood and Forest Gate.
| Biggest risers | Biggest fallers |
|---|---|
| 1. Abbey Wood (+41 from 99 to 58) | 1. Canning Town (-25 from 61 to 86) |
| 2. Forest Gate (+24 from 86 to 62) | 2. King’s Cross (-23 from 46 to 69) |
| 3. Crystal Palace (+23 from 90 to 67) | 3. Holborn (-22 from 85 to 107) |
| 4. Plaistow (+22 from 95 to 73) | 4. Canada Water (-22 from 53 to 75) |
| 5. Tottenham (+20 from 75 to 55) | 5. Camden Town (-19 from 78 to 97) |
| 6. Woolwich (+19 from 54 to 35) | 6. Kensington (-18 from 70 to 88) |
| 7. Colindale (+18 from 64 to 46) | 7. Liverpool Street (-17 from 88 to 105) |
| 8. Ealing Broadway (+17 from 66 to 49) | 8. Clapham Common (-15 from 76 to 91) |
| 9. Leytonstone (+15 from 67 to 52) | 9. London Bridge (-15 from 55 to 70) |
| 10. Catford (+14 from 97 to 83) | 10. Old Street (-14 from 92 to 106) |
| Source: SpareRoom |
Good transport links: The Elizabeth Line serves many of the areas highlighted in the research, including Abbey Wood and Forest Gate
The most searched-for London rental areas last year compared with 2022 saw Abbey Wood top the rankings, up 41 places from 99 to 58.
It is followed by Forest Gate, which is up 24 places from 86 to 61, and Crystal Palace, which is up 23 places from 90 to 67.
SpareRoom claimed that searches for rental homes in Abbey Wood have more than tripled at 210 per cent, while searches for Forest Gate properties are up 157 per cent.
Pictured: Aerial view of South London’s Crystal Palace – an area that is increasingly popular among tenants
By contrast, demand for many areas within three miles of central London are rapidly decreasing.
The number of searches has dropped a massive 45 per cent in the past year for Camden Town, which is more central and was a previous hotspot.
It has dropped 19 places in the list of popular London rental locations, from 78 to 97.
And while Clapham remains the most searched-for area, the total number of searches has dropped 33 per cent year on year.
Islington, Canary Wharf and Battersea all remain in the top ten most popular locations, but they have all fallen in the rankings with Fulham having dropped out of the top 10 list altogether.
At the same time, Wembley has entered the top ten, up six places from 11 to 5 year on year.
Hackney, Stratford, Ealing and Greenwich are other top ten areas that have seen an increase in popularity.
Pictured: Guardian wooden sculpture and Forest Lane Park and pond in Forest Gate – an area that is more popular with renters
SpareRoom said searches for properties in Southall more than tripled between 2021 and 2023, rising by 210 per cent. And searches in Ilford more than doubled at 128 per cent.
Town and cities outside of London are also increasing in popularity due to the improved access provided by the Elizabeth Line.
Other Elizabeth Line commuter hotspots include Slough, up 87 per cent, Romford, up 77 per cent, Maidenhead up 69 per cent and Reading up 51 per cent.
Beyond the capital, renters are also looking to cheaper neighbouring areas outside the likes of Leeds, Birmingham and Manchester.
Searches have increased 88 per cent, 62 per cent and 56 per cent year on year for rental homes in Stockport, Warrington and Bolton respectively.
Matt Hutchinson, of SpareRoom said ‘Our search data has highlighted changing priorities for both London and UK-wide renters, with proximity to major city centres becoming a less significant factor in the search for a room.
‘Renters are increasingly looking at locations further out to set up home, and within London, the likes of Abbey Wood and Crystal Palace are real hotspots at the minute, with an abundance of green space and easy access to the city.’
Average room rents: This shows the typical monthly cost of a room in up-and-coming locations
SpareRoom revealed the monthly rents including bills for the top ten London rental hotspots, as well as in the top 10 most searched areas.
Top of the rankings, Abbey Wood saw average monthly room rents including bills reach £796.
It compares to £1,072 a month including bills for a room in more central Clapham.
One housing expert described tenants as having ‘the worst of all worlds at the moment’.
North London estate agent Jeremy Leaf explained: ‘We are not surprised by the findings as they follow a similar pattern to the sales market.
‘Tenants, like buyers before them, in their search for better value for money are taking flight from town and city centres into the suburbs and beyond.
‘This is also reflected in the more hybrid working patterns that we are now seeing.
‘Tenants seem to have the worst of all worlds at the moment with landlords selling up and not being replaced quickly enough in response to higher borrowing and building costs, as well as additional regulation.
‘The resulting shortage of supply is pushing up rents and increasing competition for the relatively little accommodation available.’
However, he went on to add: ‘There may be a small chink of light on the horizon in that we have noticed on the ground lately a modest increase in stock and not quite so intense demand for it, which is helping to keep rents in check.’
Most-wanted areas: This shows the cost of renting a room in the most searched-for locations
It comes amid separate research from Cornerstone Tax that suggested two out of five tenants fear they will be stuck renting for the rest of their lives.
Soaring rent prices mean many tenants have little money left at the end of the month to save a deposit towards getting on the property ladder.
It means they are looking at a lifetime of renting a property rather than building up some equity in a home of their own.
The survey of 2,081 people included as many as 500 landlords and up to 731 tenants and was carried out by Cornerstone Tax in February this year.
It found that 42 per cent of tenants fear that they will be stuck renting for the rest of their lives.