A friend of mine visited a studio in London that she had seen on one of those popular rental websites. The description seemed fair, the pictures looked somewhat okay, but the actual thing was “basically a garage. It was dark, dump, simply unlivable for a human being. I cannot believe people would even advertise such a place for rent,: she told me, appalled.
The worst part is that there was probably a “bidding war” already going on for that so-called studio, which may shock many unadvised expats.
Although this was an extreme case, the experience of finding a new home in London can be frustrating for newcomers. The good news is that thorough research and a great deal of patience help increase the chances of making more informed housing decisions, whether renting or buying, including through a shared ownership scheme.
The housing market in London
Finding the perfect place to live in London often depends on an individual’s specific circumstances – whether they’re coming to study, moving alone, making a family move, as well as their legal situation. For example, with limited visas and a restricted number of hours allowed for work, some immigrants may not come to the United Kingdom for the long run. In this sense, London is frequently seen as a city of “passage,” whether it lasts six months, a year or many.
So, those who need flexibility usually opt to rent a flat or a room in London. Renting is when the person who rents (tenant) pays the landlord a monthly rent without owning the property. Tenants sign an agreement and are required to pay a deposit and the first month’s rent in advance. Although it is their responsibility to look after the place, on the bright side, they are not responsible for major repairs, meaning the landlord should arrange for them.
To find a place or a room to rent in London, many people turn to real estate agencies’ websites, as well as the following:
The rent prices in London will vary considerably depending on the size of the house or flat, and district and zone – zones 1 and 2 are the most expensive, but the farther residents go, the more they will have to spend on public transportation. Still, the average rent in the city in August 2025 was £2,253 – the highest being Kensington and Chelsea, £3,614 – compared to £1,348 UK-wide, according to the Office for National Statistics (ONS).
The pros of renting in London include:
- Flexibility to move easily, so no long-term commitments necessarily.
- Lower upfront costs (just deposit and first month’s rent).
- The landlord usually covers maintenance and repairs.
The cons of renting in London include:
- Not owning the place (no equity).
- Potential rent increases and less security for long-term stays.
- Limited control over property alterations.
Shared ownership scheme
Another reason expats are drawn to the rental market is the high costs and extensive planning and paperwork required for purchasing a place – the average price of a property in London is £562,000, while the UK average is £270,000, according to the ONS. Yet, the surging rent prices are among the complaints of practically every Londoner, with statistics also showing an annual rent increase of 7.7% in the 12 months to May 2025.
So, considering how expensive it is to rent a place in London, some residents have turned to buying a property through a shared ownership scheme, which is not widely known, It can be a bit confusing, but is often described as “a way into the property ladder”.
Shared ownership is when buyers purchase a share (typically 25 percent to 75 percent) of a property through a mortgage and pay rent on the remaining share owned by a housing provider. What makes the scheme attractive is that the opportunities are usually for new developments, it requires a lower deposit than full ownership, and it results in lower rent costs.
Besides the mortgage and rent, buyers must also pay for service charges and, in case they decide to staircase, more shares. A downside for many is that, because the property is leasehold, owners are responsible for home repairs. Also, there are a few requirements to join the scheme, including having a household income of £90,000 or less per year in London.
People who are interested in shared ownership can find information on the following websites:
- GOV.UK – Shared ownership homes
- Homes for Londoners
- Local councils
- Share to Buy
The pros of shared ownership in London:
- Requires a smaller deposit than full ownership.
- Monthly payments can be cheaper than full market rent.
- Opportunity to buy more shares and build equity gradually.
- Possibility to make certain alterations in the home.
The cons of shared ownership in London:
- Still paying rent on the share not owned.
- Responsibility for repairs and maintenance.
- Potentially high and increasing service charges.
- Potentially harder to sell because the housing provider has the right to approve buyers first.
Impartial advice on housing
Whether renting or buying a house through shared ownership in London, doing extensive research and crafting a financial plan, then seeking impartial advice is always a good route for well-thought-out decisions. Besides asking friends and acquaintances about their housing experience in London, expats can also find relevant information on the following websites:
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Read more about housing in London here in Dispatches’ archives.
See more from Andrea here and here.
Andrea Juste is a writer and editor covering health, psychology, travel, productivity, thought leadership, and more. Andrea was born and raised in Brazil, where she worked for a decade as a journalist before moving to Italy in search of her roots, then the UK, to connect with different cultures. Based in London, she manages content marketing projects for clients worldwide.
