Guide of Best Places to Live in London in Finance

Hello all,

I've lived in London for most of my life, and over the years I've developed a clear view of where the best neighbourhoods truly are in the Big Smoke. Here's an honest breakdown, no estate-agent fluff, just the realities of lifestyle, value, and what you can expect in each pocket of the city. Especially as this is a recurrent request. (I am interested to get a New York guide!)

Note that my salary average estimates are across all FO posts (including sales & trading, HF, IB, PE, ECM etc) which I believe are about right. So if you are above, feel free to jump to the next bullet point.

Juniors (Analyst, Associate, AVP)

Affordability while being close to the office is the primary concern for juniors (especially due to long hours). I will assume a salary before bonuses of £85K which means looking to rent a one-bedroom at ~£2.5K pcm (~$3.5K). 

• Working in Canary Wharf or/and the City: For those working in the Wharf, there are now excellent flats in the area, notably around Water Street. Angel and Wapping are also two areas that are easily accessible from the Wharf and the City although you will lose space due to the higher prices. For those on a lower budget (say ~£60K salary), I'd be looking at Stratford. The neighbourhood is not as good as Canary Wharf but it is OK and the new builds are usually of good quality. Abbey Wood, Royal Docks, and North Greenwich/Peninsula are now the new "up-and-coming" areas, if you want more space for your buck and still be closeby.

• Working in the West End: That usually sucks when junior as that will almost always mean a fairly long commute. However, it is well connected (Elizabeth, Jubilee, Central, Bakerloo, Victoria) and so it would be mindful to look at transports along those tube lines. Queensway, Canary Wharf, Vauxhall/Battersea, Edgware Rd/Maida Vale, Angel/Liverpool Street, Bayswater are typical neighbourhoods for juniors in private equity firms based in Mayfair.

Mid-level (VP, SVP, Director)

That's where you start to make real money, and I'd assume a salary before bonuses of £130-200K. Living in a posh area with a villagey feel, with a garden, is starting to be possible. Here you are looking to buy/rent a 2 or 3-bed terraced/semi-detached house with a garden for a budget of £3,000-£4,500 pcm (about £850K-£1.3M sale price). I would also say, this is where you start looking for freehold (and not leasehold) property - hence that usually means a house and not a flat. Here the art is to balance transportation options/price with space and green. Schools start to become a major concern.

• Fulham is a very popular area, as it is close to Chelsea, yet slightly more affordable. It is very convenient for those working in the West End. Prices are usually higher closer to public transportation (and that is something to be mindful in that neighbourhood). The best plots are locked between Bishop's Rd - Fulham Rd - Kelvedon Rd - Munster Rd. It gets cheaper towards the Clem Attlee Estate. If you are a short walk to Parsons Green station, and you are only a few minutes away from beautiful South Kensington on the district line. If far from a station, there isn't much to do around (no, Fulham Broadway does not count). This remains a very posh neighbourhood. Current price per sq m: £12,000-13,500

• West Greenwich / Blackheath area. Notably the triangle between Blackheath Hill - Greenwich South St - Crooms Hill west of Greenwich Park. This is where the well-off VPs and directors working in Canary Wharf usually live as it is a short DLR ride away. Very close to Greenwich Town Centre and beautiful Greenwich Park. Another posh area is the private Cator Estate in Blackheath Park, where mega mansions with pools are available. Good schools are abundant in the area (Colfe's, Eltham College, Blackheath Prep, etc). Very leafy feel, yet very close to London (12 min to London Bridge from Greenwich Station and 15 min to Canary Wharf by DLR). Current price per sq m: £9,500-11,500

• Dulwich is now one of the most sought after neighbourhoods in London.  Dulwich Village and Herne Hill are the most expensive areas. Some extremely good schools there as well (Alleyn's, Dulwich College). It has a very villagey feel, very leafy, yet very tranquil! It is not super dead, there are many great pubs, restaurants. There is also the Dulwich Golf Club, if you're into that. If you have a European boss, it's 50-50 whether s/he is based in South Kensington or Dulwich - so that shows how good the area is. You are also only a few minutes away from Brixton, meaning you get to enjoy the great nightlife there (without having to live there). Current price per sq m: £10,000-12,500.

• Barnes and Kew are definitely worth mentioning. They are in South West London, each in one of the loops of the Thames. If you want to live close to water, parks and nature in general, don't think further than these two neighbourhoods that are also well connected, especially if you work in the West End. Kew in particular gets very active and popular during holiday season (Summer and Christmas), yet so tranquil so it has a good dynamic of being fun yet not too noisy. It gets a bit far for the City/Canary Wharf.  There are also a couple of very good primary schools (Prep, C of E) but gets limited for older ages. Current price per sq m: £9,500-11,500.

• Highgate / Crouch End. Basically, you'd love to live in Hampstead but is it out of your budget. Still, both are great areas that have really been "booming" in the last few years. Highgate Village in particular has an extremely posh, old-world feel with Georgian houses, quaint cafés. Crouch End, by contrast, is younger, more vibrant, and more classically "North London middle-class professional" with tons of independent cafés, bakeries, yoga studios, music shops, and brunch spots. Transport is the one drawback: Highgate has the Northern Line (great for the City and West End), but Crouch End (in)famously has no tube station. Current price per sq m: £9,500-11,500.

Chiswick is often mentioned but I find it overrated because it is so dead. There is (no kidding) one pub in the whole neighbourhood. I'd get bored very quickly. Clapham is allegedly great but I don't know the area well. Forget about Islington, you're not an edgy student anymore.

Cash millionaire

Well, you have made it. Here is where you'd want to live.

• Hampstead. The gold standard. Hampstead Village has cafés, boutiques, and an ultra-refined atmosphere. The surrounding streets include period mansions, embassy houses, and enormous gated properties. The Bishops Avenue, or "Billionaires' Row", is famous for having some of the most expensive plots in the UK. Walkability is outstanding, and Hampstead Heath is essentially your backyard. Schools are elite (UCS, South Hampstead, King Alfred, Highgate nearby). Excellent for both City and West End commutes. (Do you even care for price per sq m at this level? Anyways, we are at around £14-16K). 

• Richmond / East Sheen. Richmond is consistently ranked one of the best places to live in the UK. Think riverfront walks, Richmond Hill views, Richmond Park's wild deer, and some of the best family homes in London (large gardens, wide streets, privacy). East Sheen provides slightly better value but with similar access to the park - true Londoners know that trick. The lifestyle here is very luxury suburban with outstanding state and private schools (The Harrodian, Ibstock, Kings House, St Paul's nearby). This is THE area for moms with daughters that have a horse. It's the equivalent of soccer moms in the U.S. Market is at around £14-16K per sq meter.

• Wimbledon (the right "side"). Wimbledon Village is the premium area, horse stables, cafés, boutiques, and enormous detached houses surrounding Wimbledon Common. Your neighbours are usually celebs. This is where you find the gated estates and long driveways. Transport is excellent (District Line, rail to Waterloo). Schools are strong (King’s College School being the standout). The further you go from the Village though, it quickly becomes less affluent, but still is marketed as Wimbledon, so please be careful with estate agents - the Wimbledon you are thinking about is Wimbledon Village! Coombe as well is great and around the corner. Market is at around £15-17K per sq meter.

• Holland Park. The land of champagne socialists (or limousine liberals if you are American). Funnily enough, it is probably the poshest and most expensive area in all of London (and dare I say all of Europe). Especially the plots landlocked between Hyde Park and Holland Park behind the embassies / Kensington Palace (where Kate and William live) - it really doesn't get any better! There is also the Holland Park School, which is top tier and many prime ministers went there, such as Keir Starmer. However, be ready to fork out a massive fortune, as the market price is ~£30K per sq meter (for the burgers, that's $4K per sq foot). 

Major traps to avoid

Do NOT buy a leasehold unless you're at a junior level (where the plan is to sell in a few years). That means forget about 95% of the flats available on the market.

Marylebone, Mayfair, Chelsea, and super-central areas in London are excessively expensive, and there is a lack of good schools (unless you are willing to pay for Westminster School where fees are £50K per year per kid), no gardens, it is very touristy etc. Are you really willing to spend £££££ for a leasehold flat where tourist noise will be abundant, while your colleagues could buy with the same amount of money a 4-bed mansion with a massive garden just 20 min away by train?

A lot of West London neighbourhoods that used to be "top tier" and peaked during Covid really fell off (both in price and "populace"), thinking Ealing, Harrow-on-the-Hill, Brook Green and more. Be mindful to not have old West/East or North/South preconceptions cloud your judgment. Someone in Dulwich is probably in a much better situation than someone in Harrow now (while this may not have been true 20 years ago).

Also, please, do not borrow against your bonus (unless that is above 80% of your total comp).

Happy to take in comments!