Rent

Rent: London vs Toronto

Rent is lower in London than in Toronto, but the gap is usually smaller than the gap in purchase prices. That matters if you're deciding whether to rent first after moving, or comparing the cost of renting in Toronto with owning in London.

Last reviewed October 30, 2026

Two kinds of rent data

When you read about rents, check which kind of figure you're looking at. They tell very different stories:

If you're moving, asking rents are the better guide to your costs. If you're judging the long-run rental market, for example as an investor, CMHC's data is the more reliable benchmark.

Current figures

Source: CMHC Rental Market Reports, 2025 edition. Same survey year for both. The Toronto figures are CMHC's Greater Toronto Area figures. Bachelor and one-bedroom averages are in CMHC's Housing Market Information Portal.

Why the rent gap is smaller than the price gap

Home prices reflect not just what it costs to live somewhere today, but what buyers expect about the future. Toronto's prices have historically reflected strong expectations of long-term growth, which pushes prices up relative to rents. London's prices sit lower relative to rents, which helps explain why many people find that owning in London costs closer to renting than it does in Toronto.

London's rental market also has its own pressures. Western University and Fanshawe College bring a large student population, and much of the city's rental demand comes from students and young workers. Vacancy in some areas, particularly near campuses, can be tight at the start of the school year.

Rent control in both cities

Both cities follow the same provincial rules under Ontario's Residential Tenancies Act:

• For most units first occupied before November 15, 2018, annual increases for sitting tenants are capped at the provincial guideline set each year.
• Units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline.
• There is no limit on the rent a landlord can set for a new tenant (vacancy decontrol).

So the protection is the same in London as in Toronto. What differs is the market rent you'll pay when you sign a new lease.

Should you rent first when you move to London?

Some movers rent for six to twelve months before buying, to learn the city first. It's a reasonable strategy, with trade-offs:

• Pros: you learn neighbourhoods first-hand, avoid a rushed purchase, and can sell your Toronto home without the pressure of a matching closing date.
• Cons: you pay rent and moving costs twice, and you're exposed to price changes in the meantime.

A middle path is a short-term furnished rental in the neighbourhood you're leaning toward, for a month or two, while you search with an agent.

Renting in Toronto vs owning in London

This is the comparison many hybrid workers are really making. To do it properly, compare:

1. Your current Toronto rent, plus tenant insurance.
2. London ownership costs: mortgage payment + property tax + home insurance + utilities + maintenance (1–2% of value a year is a common rule of thumb).
3. Changes in transportation costs (a second car? commuting days?). See transportation.
4. The equity you'd build through mortgage principal repayment.

Our sister site London Rent vs Buy walks through the rent-or-buy decision in more depth.

Tenant costs beyond rent

When you compare rents, check what's included. Many older London apartment buildings include heat and water, while newer buildings and rented houses often bill utilities separately. Parking is frequently included in London rentals and charged separately in Toronto. Add tenant insurance in both cities. It's inexpensive and often required by landlords.