The number of London postcodes offering average room rents of less than £800 has dropped to just five.

It is down from 81 postcodes in 2020, according to the latest figures from SpareRoom.

It is the latest evidence of how cheaper housing in London is disappearing. This trend was once reserved for those looking to secure a place on the property ladder, but has now struck tenants, particular with average room rent costs having soared since the beginning of the pandemic.

Cheapest room rents

All five of the capital’s cheaper postcodes are in the North or East.

The cheapest average room rents can be found in East Ham in E6, Manor Park in E12, Chingford in E4, Upper Edmonton in N18, and Forest Gate in E7.

The average rent for a room in London, for the first three months of this year, currently stands at £978.

It is down 0.5% on the previous year, but is in sharp contrast to the same period in 2020.

At that point – just before the pandemic – London’s average room rent was £773 a month.

Post-pandemic demand

In addition, a much large 81 London postcodes had room rents below £800, including 50 below £700 a month.

London room rents hit a record high of £1,015 a month more than two years ago, at the end of 2023.

Despite marginal year-on-year decreases throughout 2025 and in the first quarter of 2026, rents in the capital are still way above the ceiling of affordability for many people, after years of upward pressure on rents caused by intense post-pandemic demand, according to SpareRoom.

In reality, there’s no such thing as cheap housing in London now.”

Matt Hutchinson, Director of SpareRoom, said: “Rents in the capital have been flatlining for a while. While this is clearly better than the years of uplifts that came before, it’s hardly a dream scenario.

“Years of intense demand on London’s limited rental stock has inflated prices and made cheap rents all too scarce. Falling demand and slightly increased supply points to more renters being priced out of inner London, which is why we’re still seeing heightened demand in the suburbs and commuter belt.

“In reality, there’s no such thing as cheap housing in London now. If you do manage to find a room at £800 per month – and these are increasingly endangered – you’d still need to be earning a salary of £32,000 a year to afford the rent. This is over and above what many people in the capital earn, especially those just starting their careers.”