Plumstead in South East London is currently the cheapest place to rent a two-bed property in the capital, according to research by property website Rightmove.
The average asking rent of a two-bed property in Plumstead is £1,143 per month, seven times cheaper than the most expensive area, Mayfair.
Demand for rental property in the capital is at a record high with a 69% increase in email enquiries sent from home-hunters to letting agents in the past year.
The list of top twenty cheapest areas is dominated by the South East and East London, with Middle Park coming in second cheapest at £1,192 and Eltham coming third with an average two-bed rent of £1,195 per month.
In Greater London the average asking rent of a two bed is currently £2,216 per month, up over 6% in the past year from £2,086, and rising more rapidly than the previous annual rise of 3.7%.
Much of the growth has been fuelled by Outer London, where the average rent of a two-bed has increased by 8.4% in the past year to £1,493, compared to a more modest rise of 2.3% the previous year.
Sam Mitchell, Head of lettings at Rightmove, said: “Rental asking prices have been steadily increasing in the past few years, following a short lull post-Olympics. Those struggling to find a place they can afford could consider these more affordable areas, and visit them to see if they would suit their lifestyle. Factors like being close to a tube station or a good school will always come at a premium, but it will help if you’re looking in an area with a below average London rental price to begin with.”
Alexa Joyeux, lettings manager at Robinson Jackson, said: “We started noticing an increased demand for Plumstead among tenants when the DLR opened in nearby Woolwich in 2009. As soon as work started on the Crossrail station, enquiries stepped up another gear. In fact, in the last 18 months we have seen rental values rise in the region of 20% as tenants position themselves in Plumstead ahead of Crossrail's opening.
“We've also noticed a change in the type of tenant applying for properties - they're coming from further afield and many of those have been priced out of areas like Bow in East London and South West London boroughs. Plumstead, for the time being, retains a level of affordability mixed with a good housing stock - lots of pretty Victorian terraces - wide open spaces that include Plumstead Common, Winn's Common and Oxleas Woods, plus a very short journey to the revived and regenerated Woolwich town centre."