Tenants need £683 a month to rent a ROOM on average says SpareRoom

Tenants face an eye-watering average price of £683 per month to rent a room alone, with Londoners typically paying the most at £952 per month.

New data from home-sharing website SpareRoom showed that room rents have risen by 10 per cent or more in every region in Britain.

At £952, the average room rent in London has seen its biggest percentage increase, up 20 per cent in a year.

It compares to a national average of £683 a month to rent a room, which is an increase of 15 per cent in a year.

The London postcodes with the biggest increases in the cost of renting a room over the past year are WC, NW and E. They are up 21 per cent to £1,250, £965 and £926 respectively.

And for the first time, there is not a single London postcode with an average monthly rent of less than £700.

Even traditionally cheaper areas such as Abbey Wood – with postcode SE2 – are becoming more expensive.

SpareRoom suggested that this is partly due to the relative affordability of such areas, as well as better transport links, including the Elizabeth Line.

The number of postcodes in London where the average room rent is over £1,000 a month has more than quadrupled in the past year.

There are now over 30 postcode regions where the average is £1,000 or more, and Chelsea passed the £1,500 mark for the first time.

Meanwhile, the average price to rent a room in Britain has risen 15 percent in the first three months of this year, compared to the same period in 2022.

The North East and North West regions saw the largest annual rent increases after London, both at 16 per cent compared to Q1 2023 with the same period a year earlier.

Matt Hutchinson, from SpareRoom, said: “While demand for rooms has fallen since record highs in late 2022, it is still above pre-pandemic levels.

“Combined with higher interest rates and a higher cost of living, rents continue to rise.”

He added: “Demand is likely to fall slightly over the course of the year, but unless something is done to halt the continued decline in rental supply, things are unlikely to improve much for tenants.”

It comes as HomeLet revealed that the average rent in Britain was £1,184 in March, up 0.8 per cent from the previous month.

However, excluding London, the average rent in Britain is £993 per month, an increase of 1 per cent in a month.

Andy Halstead, of HomeLet & Let Alliance, said: ‘With every region of the country reporting month-on-month rent increases, it’s fair to say that demand for rental properties remains exceptionally high.

It has been interesting to see a few months of price declines in London, but the capital seems to have recovered from a slight dip, in line with increases across the country.

“The lack of available housing means the market is likely to remain very competitive, so landlords must remain vigilant and tenants must be aware that finding suitable premises is proving to be a difficult task for many.”