0:02 AM, 22nd January 2025, About 4 hours ago
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The UK’s private rented sector is showing signs of stabilisation after a period of upheaval, with rent increases slowing across the country, data reveals.
SpareRoom’s latest rental index reveals that London is the only UK region experiencing rent falls, marking the fourth consecutive quarter of decline.
The platform says that in the final quarter of 2024, the average room rent in London dipped by 2%, from £1,015 in Q4 2023 to £993.
That marks the biggest drop in London rents since Q1 2021.
SpareRoom says that SW3 holds the distinction of being London’s most expensive postcode for renting, with an average of £1,488 per month, reflecting a 9% year-on-year drop.
The firm’s director, Matt Hutchinson, said: “The past few years have been incredibly tough for renters, not just in London but across the whole of the UK.
“With average rents falling in the capital and increases slow across the country, hopefully there’s finally some light at the end of the tunnel.
“However, there’s still a long way to go before we can call rents genuinely affordable.”
He added: “Our hope is that this cooling in the market, coupled with the traditional January increase in supply as cash strapped homeowners take in lodgers, will give renters some confidence that the market is slowly but surely turning itself around.”
Nationally, average UK room rents saw a modest 1% year-on-year increase, rising from £738 to £774.
This is the smallest annual increase seen in 2024, offering some respite to renters who faced steeper increases throughout the year.
Outside of the capital, Twickenham (£928), Kingston-upon-Thames (£920) and Epsom (£855) emerged as the most expensive towns/cities for renting a room.
Notably, Edinburgh, which previously held a prominent position on this list, is absent.
At the opposite end of the spectrum, Bootle maintains its position as the most affordable town to rent a room, with an average rent of £447, followed closely by Barnsley (£465) and Bradford (£473).
While rents continue to rise, no UK region saw rent rises above 5%, though the North West saw the most significant increase, with rents climbing by 5% to £608.
It was followed by East Anglia and the South West, both registering a 3% increase to £669 and £665 respectively.
