I'd imagine there has to be tons of good shit in a city as big as london, but what do I know about that, eh...
Comanechi are good in their simple way and Todd are one of the best things I've heard in long time. Both from london I believe (though not entirely)
not that I really pay attention to the location of the band.
As for my town...
These are good stuff, at least live:
http://www.myspace.com/cosmojonesbeatmachine
http://www.myspace.com/astrocancaravan
I don't really know much about the music scene in my former town (which is still my proper hometown), but my friends over there have a band, who have their good moments:
http://www.myspace.com/laivue
I've lived only in small places and most of the stuff I've witnessed is either total suck or rather generic indie rubbish.