London is one of the most exciting places in the world to start new adventures and begin the rest of your life as you know it. With phenomenal and diverse universities, a thriving job market and numerous cultures crammed into a wide array of boroughs, there is so much to be uncovered amongst its buzzing streets. However, because it is such a popular city, finding affordable accommodation provides a hurdle that we’re certain you can leap.
Whether you’re a young professional, a student, or just someone starting out on your London adventure, securing a place to stay is one of the first things on your to do list. Luckily, as a charity who has been providing accommodation in London for over 80 years, LHA London knows all the tips and tricks for finding the right place for you.
Why is accommodation so expensive in London?
Before we dive into tips and tricks, it’s important to understand why accommodation in London can be so pricey. This will help you filter out the more expensive options and narrow down your search a little more.
There are several factors at play:
- High demand: London is one of the most populated cities in Europe, and demand for housing is as high as it can be. This is especially true in central areas and around major transport links.
- Location matters: The closer you are to key areas like the West End, Shoreditch, or South Bank, the higher the rent. Areas further out, like Zone 4 and beyond, are often more affordable but come with slightly longer commutes.
- Rent increases: The cost of rent in London has been rising steadily, which means you may have to be clever in your search.
Despite these challenges, finding a place to live in London that’s affordable and comfortable is absolutely possible with the right approach. Let’s look at some practical steps you can take.
When is the best time to search for accommodation?
As early as possible. The earlier you look, the better the experience will be. Not only will this reduce the stress of having to find something you can afford at the last minute, but it will give you the opportunity to plan when you decide to pay, allowing more flexibility and the potential for finding discounts.
If you’re looking for university accommodation, you may be slightly dependent on results day to actually decide. We recommend doing your research in advance and making a list of accommodation options at your top university choices so that when you get your results, you can beat the rush. If you have an unconditional offer, it can make this process even easier.
If you’re looking for short-term accommodation, then try looking in off-peak seasons as prices will drop.
Our tips for finding affordable accommodation
1. Set a realistic budget
Before you even begin searching for accommodation, it’s essential to set a budget. Housing costs in London can vary dramatically depending on the area and type of property. A good rule of thumb is to aim for rent that is no more than 30-40% of your monthly income.
For example, a room in a shared flat or house might cost anywhere between £500-£800 a month, depending on the area.
It’s important that you are realistic about your budget. Although you might want something a little bit more expensive, you need to make sure that not only can you afford it, but you’re going to be able to afford it for the duration of your stay.
Ask yourself the following questions:
- Do I have enough money remaining to build up my savings?
- Realistically, can I afford food with my remaining budget?
- If the rent changes, do I have enough leeway to adapt to it?
2. Consider hostels and shared accommodation
Hostels are a form of basic temporary housing that offers shared accommodation for a lower price than a standard rented room. Most hostels give residents access to shared common areas like a kitchen, bathroom, lounge and utilities.
If you’re on a tight budget, shared and hostel style accommodation is one of the most affordable options in London. Sharing a flat or house can significantly reduce your rent, and you’ll also benefit from meeting like minded people who, like you, are new to the area.
To make your hostel feel more like home, take a look at our 5 Hostel Life Hacks that help you fully embrace all the wonderful things that shared accommodation can bring to your life.

3. Choose your area wisely
London is a large and exciting city, and you don’t have to live in the heart of it to enjoy all the perks. In fact, you may find that living a bit further out can save you a significant amount on rent.
Try looking at areas in zones 2, 3, or 4, where you’ll still have easy access to central London, but the cost of accommodation is cheaper. Some of the outer boroughs might even suit who you are even more, with places like Brixton, Camden and Notting Hill known and loved for their unique culture.
Here are some areas that offer more affordable accommodation:
- Hackney
- Brixton
- Notting Hill
- Camden
- Royal Oak
When choosing an area, make sure to research transport links, safety, and local amenities. Sometimes it’s worth paying a little extra for a location with better connections so you don’t blow your budget on train and bus fares.
4. Search for deals and discounts
When looking for accommodation in London, don’t forget to check for special deals and offers. Many accommodation providers offer discounts or free rent for the first month when you sign a long term contract.
The LHA Rewards program is a fantastic way to save money while living in London. Effectively, the longer you stay with us, the less you pay. If you’re aged 18-29 and looking for fantastic rates on shared accommodation, then our hostels are the ideal place to start.
5. Find accommodation with amenities included
One of the biggest challenges when living in London is managing multiple bills on top of your rent. Water, gas, electricity, Wi-Fi, council tax, and even cleaning fees can all add up quickly. To help make budgeting easier, look for accommodation options that include these utilities in the rent price.
This way, you won’t need to worry about fluctuating utility bills, making it easier to manage your budget. For young people who are just starting out in London, this type of accommodation is often the most convenient.
At LHA London, we offer shared accommodation that includes all of your utilities in the rent, which means you can budget with ease. The price you see on the website is the price you pay. We cover everything from water and electricity to Wi-Fi, council tax, and sometimes even cleaning services. It’s a fantastic way to keep costs down without the hassle of managing your own utility bills.

6. Be flexible and patient
Finding affordable accommodation in London can take time. It’s important to be patient and flexible with your expectations. You may need to compromise on certain features, like the size of your room or location, to get a better price.
Also, it’s worth viewing multiple properties before you make a decision. Things that seem too good to be true might be, and you don’t want to rush into signing a lease without checking the place out in person.
Moving to London can be both exciting and overwhelming, especially when it comes to finding affordable accommodation. But with a bit of research, some flexibility, and the right resources, you can find a place that fits both your budget and your lifestyle.
At LHA London, our youth hostels can start from as little as £90 a week and at LHA London there are options for catered accommodation too. All rooms are fully catered with utilities, internet access, personal belongings insurance and 24 hour security.
Our hostels cover all major points on the city’s map and cover your bills too, so you don’t need to worry about any additional costs while you focus on building the life you’ve dreamed of.
For more information about how our charity can help you get set up in the big city, take a look at our available accommodation and don’t forget to check out our offer to discover what we can offer you.
Contact Us