40% of London's Young Adults Can't Afford Even the Cheapest Homes — Here Are the Best Boroughs for Renters

Four in ten young adults in London cannot afford to buy even the most modest properties in their local area, fresh analysis reveals, as the capital's housing affordability crisis forces an entire generation into long-term renting with monthly costs now averaging a record-breaking £2,121, following a 4.2% increase over the past year.

The stark reality that 40% of young Londoners are unable to afford a property, despite having a deposit, has prompted new research into which London boroughs offer the best prospects for renters. Tower Hamlets has emerged as the capital's top location for tenants, despite mounting affordability pressures across all areas.

London's Most Renter-Friendly Boroughs

New research from Property Investments UK has identified the most renter-friendly boroughs in London, based on metrics such as tenant satisfaction, affordability, transport access, and the percentage of young adults renting. Tower Hamlets tops the list, followed closely by Hackney and Westminster.

Here's a summary of the top boroughs for renters:

*Higher ratio = less affordable to buy

Tower Hamlets Leads the Pack

Tower Hamlets stands out with 74% of households renting and nearly 90,000 rented properties. The borough's appeal is driven by its large student population (39,339), proximity to Canary Wharf, and excellent transport access with 582 stops. Despite high demand, tenant satisfaction remains moderate at 69%, and the affordability ratio of 11.03 reflects growing barriers to ownership.

'Tower Hamlets continues to thrive as a rental hotspot, particularly for students and young professionals,' said Robert Jones of Property Investments UK. 'Its proximity to Canary Wharf and excellent transport links make it a desirable location, though affordability concerns may be a growing challenge for long-term renters.'

Hackney and Westminster Remain Popular

Hackney follows closely with 73% of households renting. Though its student population is smaller, the borough benefits from a high employment rate (83%) and a vibrant cultural scene. Tenant satisfaction sits at 64%, and the affordability ratio of 13.66 suggests rising costs.

'Hackney's popularity stems from its vibrant social scene and creative industries, making it a hotspot for young professionals,' Jones noted. 'However, rising costs may push renters to seek more affordable alternatives in neighbouring boroughs.'

Westminster, with 72% of households renting and a massive university population of 82,535, remains one of London's most sought-after rental locations. Its 693 transport stops offer unmatched connectivity, though affordability is a significant hurdle—the borough's ratio of 18.04 is the second highest in London.

'Westminster's prime location and student population ensure consistent rental demand,' Jones added. 'But affordability remains a key issue. Investors targeting this area should focus on offering competitive rental prices and amenities to attract long-term tenants.'

Boroughs Less Friendly to Renters

At the other end of the spectrum, Havering and Bexley rank as London's least renter-friendly boroughs. Both have just 30% of households renting and lack a significant university presence. Havering's affordability ratio of 10.87 and Bexley's 9.8 suggest better prospects for buyers, but limited appeal for renters.

'Havering's strong employment and affordability make it ideal for families looking to buy rather than rent,' said Jones. 'Investors should focus on long-term rental properties catering to stable tenants.'

Bexley, despite offering 738 transport stops, has the lowest tenant satisfaction at 53%. Its affordability makes it attractive for first-time buyers, but rental demand remains low.

'Bexley's affordability makes it attractive for first-time buyers rather than renters,' Jones explained. 'Investors should consider long-term rental properties for professionals transitioning to homeownership.'

Renting as a Long-Term Reality

With mortgage rates and house prices outpacing wage growth, renting is no longer a temporary phase for many Londoners. Inflation and high living costs continue to erode savings, making deposits harder to accumulate and pushing more people into the rental sector.

'Renting in London is increasingly becoming a long-term reality for many,' Jones concluded. 'Even in outer boroughs with relatively better affordability, homeownership remains out of reach for many young professionals.

'For investors, the sustained demand offers opportunities, but affordability pressures mean renters are becoming more selective. Those offering well-located, competitively priced properties with quality amenities will see the strongest returns.'

As London's workforce grows more reliant on rental housing, understanding the boroughs best suited to renters will be key for both tenants and investors navigating the capital's evolving housing landscape.