Rent prices could drop if 1% of spare rooms were rented out

Rent prices could drop if 1% of spare rooms were rented out

0:01 AM, 2nd December 2024, About 2 hours ago

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If just 1% of the UK’s 26 million spare rooms were let out, rent prices would drop back to 2017 levels, according to new research.

SpareRoom reveals that rent prices have surged, with the Office for National Statistics (ONS) reporting an 8.8% increase to £1,348 in 2024, up from £456 in Q3 2017.

The flat-sharing website says people taking in lodgers could be the solution to balancing supply and demand in the rental market.

Number of rooms available has dropped

SpareRoom data reveals that between September 2017 and 2023, the number of rooms available for rent dropped from 65,000 to just 35,668 — a decline of nearly 50%

The flat-share platform says this dramatic drop is due to several factors such as higher property and council taxes, reduced mortgage interest deductions, and stricter regulations on licensing, room size, and safety standards for shared homes.

According to SpareRoom, the number of renters looking for a room has almost tripled over ten years, from 70,838 in January 2013 to 227,148 in September 2023.

Missing a trick when it comes to boosting housing supply

SpareRoom says the key to addressing supply and demand lies with lodgers. According to the ONS, there are around 26 million spare rooms in the UK. If just 1% of those were rented out, it could create enough supply to bring the market back to 2017 levels.

SpareRoom also says this could drive rents down to 2017 levels, when the average room cost £456 (Q3 2017).

Matt Hutchinson, director at SpareRoom said: “With so many empty bedrooms in the UK, we’re missing a trick when it comes to our housing stock.

“Renting out even a fraction of these currently unoccupied spaces would help both renters and struggling homeowners, easing the extreme imbalance in supply and demand and, ultimately, helping to bring rents down across the country.”

SpareRoom acknowledges that this scenario is unlikely, but taking in a lodger can ease pressure on renters and offer much-needed financial relief for homeowners.


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