The One Direction singer was photographed being shown around properties in Primrose Hill earlier this week, reports The Sun.
A source said: "Harry is house-hunting in a trendy part of town because a lot of his friends have told him that's where he should be looking to live.
"Presenter Nick Grimshaw said that's the best place to be, so Harry's looking into it."
Styles was seen looking at houses with an estate agent and One Direction's hairdresser, who also grew up in the same area as him.
Harry Styles has been at the centre of an alleged affair with married DJ Lucy Horobin in recent weeks.
He has recently returned to the UK after One Direction's US arena tour came to a close.
Bandmate Zayn Malik has also purchased a second-hand Bentley for around £32,000 this week.