Get the best deal: how to rent in London — from good-value neighbourhoods to securing a tenancy

By 2025 Prince George will be at senior school, Crossrail will (presumably) have opened and the capital will officially be a city of renters, with tenants outnumbering owner-occupiers.

Renting is rapidly morphing from a short-term rite of passage into a permanent lifestyle for Londoners priced off the housing ladder.

So learning how to rent well is more important than ever, particularly in a climate of high competition and rising costs.

Rents are starting to inch upwards after two years of stagnation, by 1.36 per cent year on year according to new data from Landbay Rental Index.

John Goodall, chief executive and co-founder of Landbay, suspects the rise is a sign that recent increases in stamp duty and the end of tax relief on mortgage interest payments for landlords are starting to be passed on to tenants.

“As landlords begin to feel the pinch … the inevitable consequence is an upward pressure on prices,” he says.

In Canary Wharf, Tom Crowe, residential lettings manager at Harrisons Property, agrees rents are likely to start to rising.

“There was an enormous 51 per cent decline in available properties to rent [over the last year], signalling a shortage of supply in a market that is rife with growing tenant demand,” he says.

“It is our strong belief that there will be considerable upward pressure on rental prices.”

Renting well means not leaving things until the last minute, says Alex Sullivan, founder of Ems, a start-up which uses algorithms to find homes for tenants.

Begin your search two months in advance. “By then you should know what you’re looking for in the best areas for you.”

Do some research online, talk to friends and keep an open mind. “Very often people just stick to those few places they have heard of, and that can lead to people making bad decisions,” says Sullivan.

WHERE TO RENT IN LONDON

East London: Bow, E3
Trevor Stunden, chief executive of online rental firm Residently tips Bow, E3, where he estimates an average two-bedroom flat would cost £1,648 a month.

“Bow is quick into central London on the Central line with canal living and great green space within walking distance,” he says.

North London: Upper Holloway, N7
Another option is N7 — Holloway/Upper Islington — slightly more expensive at an estimated £1,850 per month for a two-bedroom property.

“N7 has quick connections into King’s Cross and is nestled between the two highly sought-after boroughs of Islington and Camden,” says Stunden.

South London: Camberwell, SE5
Stunden’s recommendation here is Camberwell, SE5, at £1,603 a month for an average two-bedroom flat.

“With the new cycle lanes into the city and walking distance to a lot of new culinary delights and green spaces like Burgess and Ruskin Parks, it’s hard to beat,” he says.

“This area remains very affordable if you’re willing either to cycle or take the bus.”

North-West London: Cricklewood, NW2
For James Davis, chief executive of Upad, all roads lead to Cricklewood.

“It’s attracting increasing levels of interest from those priced out of nearby Queen’s Park and West Hampstead. Its fast transport links make it a feasible alternative, offering the dream combination of comparable commuting times and lower rents.”

A typical two-bedroom flat would cost about £1,400 a month, while a three-bedroom house would come in at about £1,750 a month.

Outer London: Croydon and Bromley
Buyers on lower budgets will need to look further afield. “Croydon and Bromley have recently started to see some real investment with rents still very low and a great lifestyle on offer for younger renters,” says Tim Hassell, managing director of Draker Lettings.

“Two-bedroom properties can start in the region of £1,200 to £1,400 per month and three-bedroom properties from £2,000 per month.”

ACT QUICKLY

Once your hunt has begun you need to move fast. “We rent around a fifth of all our available properties without a viewing even taking place because an applicant knows the development and can refer to the photos and floorplan of the individual property,” says Tom Crowe of Harrisons.

Block out time for viewings during the week. “Many tenants miss out on a property because they see it listed on Wednesday or Thursday, organise a viewing for the weekend and by that time it has already gone,” warns Adam Male, director of lettings at urban.co.uk.

“Consider taking an afternoon off work so you can react quickly and throw your name in that hat right away.”

Kate Faulkner, managing director of propertychecklists.co.uk says it is essential that tenants have all their paperwork as well as funds for deposit and initial rent payments ready to go, in order to avoid a last-minute hitch.

“Have your bank statements ready to show you can afford the property, your references from previous landlords and employers and make sure agents know how organised you are,” Faulkner advises.

CHARM YOUR AGENT

In order to get in ahead of the pack, it is always worth charming agents. “Find out if the agent is aware of any ‘off-market’ properties that have not yet been listed but will become available soon,” says Robert Dix, co-founder of The Property Hub.

When you do find a property you like, you need to sell yourself. “If you intend to stay for a long time, or know you’ll get a glowing reference, say so,” advises Dix.

“Also give the reason why you’re looking to move. In a competitive market where there are multiple offers, giving more information might just swing it — and if a letting agent is involved, they’ll have more detail to give their landlord.”

On the other hand, don’t be tempted to embellish your CV. “Many tenants lose out because they are so desperate to find a place that they lie about their situation, employment, income and more,” says urban.co.uk’s Adam Male.

Another pitfall to avoid is allowing your enthusiasm/desperation to stop you getting the best value you can. Agents won’t encourage you to haggle, as they are working for the landlord, not you.

But if a property has been on the market for a long time you might be able to get a discount — once you’ve satisfied yourself there’s not something horribly wrong with it.

“Don’t be afraid to negotiate,” says Robert Dix. “Landlords want to let the property and if you have good references, will maintain the property well and are looking for a long-term tenancy, you may find the landlord is happy to move a little on the rent.”