Average room rents rose by 10 per cent or more in every UK region, every London region and almost every major town and city, compared to the start of 2022.
Data from flatshare site SpareRoom shows that average monthly room rents in the capital have now soared to £952, up 20 per cent year-on-year.
For the first time ever there’s not a single London postcode with average monthly rents under £700. Even traditionally cheaper areas like Abbey Wood (SE2) are becoming more expensive, due in part to their relative affordability, but also as a result of better transport links, thanks to the Elizabeth Line.
The number of London postcodes where the average room rent tops £1,000 a month more than quadrupled in the past year. There are now more than 30 postcode regions where the average is £1,000 or more, and Chelsea passed the £1,500 mark for the first time.
Taking a wider look across the country, UK room rents rose by 15 per cent in the first quarter of 2023, compared to Q1 2022. North East and North West regions saw the biggest rent increases after London, both up 16 per cent when comparing Q1 2023 with Q1 2022.
SpareRoom director Matt Hutchison says: “Although demand for rooms has fallen since the record highs at the end of 2022, it’s still above pre-pandemic levels.
“Combined with higher interest rates and an increased cost of living, that’s continuing to push rents up.
“Demand is likely to fall a little over the course of the year, but unless something is done to stop the continuing decline in rental supply, things aren’t likely to improve much for renters. Government has to do much, much more to help, or the housing crisis will become a housing disaster.”