SpareRoom Rental Index

Room rents reach record highs across the UK

UK room rents rose by 16% year on year when compared to Q3 of 2022, with the average monthly room rent hitting £721 – another new record.

The average rent in both London and the UK as a whole is now at an all time high.

UK rents still rising

Average room rents rose by 10% or more in every UK region, every London region and almost every one of the UK’s largest towns and cities when compared to Q3 2022. The largest regional increases were seen in Northern Ireland (up 19%), followed by the North East (up 17%), Scotland (up 16%) and the North West (also up 16%).

No sign of a London slowdown

Average monthly room rents in London have soared to £989 – another record high, creeping ever closer to the £1,000 mark. There were increases in every London region and every London postcode, with the biggest rises seen in the North (up 17%), followed by South East, West Central, East and North West regions, all up 16% YOY.

Rents up in every London postcode

Every London postcode saw an increase in room rents in Q3 2023, with W8 (Holland Park) up 45%, NW7 (Mill Hill) up 38%, and SE28 (Thamesmead), historically one of London’s cheapest areas for renters, seeing a 36% surge in room rents. This could indicate that renters, forced out of more desirable London areas due to rising rents, are flocking to cheaper postcodes for more affordable housing, driving rents up in these areas as a result.

The cheapest London postcodes are:

UK’s cheapest and most expensive towns and cities

Rents have increased YOY in all the UK’s 50 largest towns and cities, with Belfast (up 25%), Edinburgh (up 22%) and Warrington (also up 22%) seeing the biggest hikes. For the first time on record, Edinburgh is the most expensive city/town outside of London with average monthly room rents of £896, beating the London suburbs of Kingston upon Thames (£890), Twickenham (£874) and Barnet (£842). Rental increases in the Scottish city are likely due to increased demand in the run up to the Edinburgh Fringe festival which takes place every August, as seen by rents spiking in July 2023.

These are the most expensive places to rent in the UK, outside London:

UK’s cheapest towns and cities

The cheapest areas to rent outside of the capital in Q3 2023 were South Shields (£442), Burnley (£446) and Barnsley (£456).

These are the cheapest towns and cities to rent in the UK:

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Methodology

SpareRoom’s Quarterly Rental Index compares data from Q3 2023 with Q3 2022, based on 200,000+ UK room ads (inclusive of bills). Sample size is the combined total across both periods.

Towns/cities/postcodes with a sample size of under 50 have been excluded from this report. London data covers E, EC, N, NW, SE, SW, W & WC postcodes.

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Every quarter we analyse 100s of 1,000s of room rents for the SpareRoom rental index. Giving you average rents and rent increases and declines across London and the UK:

• Average rents in London
• Average rents in the UK
• Average rents in every major UK town and city