Room rents in the UK have continued their upward trajectory, reaching unprecedented heights in the third quarter of 2023, as reported by SpareRoom, a flat-sharing platform.
In a year-over-year comparison with Q3 2022, room rents have surged by a remarkable 16 percent, resulting in the average monthly room rent now standing at £721.
This surge in room rents is a nationwide phenomenon, with every UK region, London suburb, and the majority of the UK’s major towns and cities witnessing a significant increase of at least 10 percent when compared to Q3 2022. Among the regions experiencing the most substantial growth are Northern Ireland, where rents have climbed by 19 percent, closely followed by the North East at 17 percent, and Scotland and the North West, both registering a 16 percent increase.
Average monthly room rents in London have reached an impressive £989. Notably, there were rent increases in every London region and postcode, with the most significant rises occurring in the northern part of the capital, where rents surged by 17 percent. This was closely followed by the South East, West Central, East, and North West regions, all registering a substantial 16 percent increase.
All London postcodes experienced a surge in room rents during Q3 2023, with notable increases in W8 (Holland Park) at 45 percent, NW7 (Mill Hill) at 38 percent, and SE28 (Thamesmead) – a historically budget-friendly area for renters – witnessing a remarkable 36 percent rise in room rents.
The trend of rising rents extended to all of the UK’s 50 largest towns and cities, with Belfast (up 25 percent), Edinburgh, and Warrington (both up 22 percent) experiencing the most significant hikes. Edinburgh now stands as the priciest city or town outside of London, with average monthly room rents reaching £896, surpassing London suburbs like Kingston upon Thames (£890), Twickenham (£874), and Barnet (£842).
Rental increases in the Scottish city are likely attributed to heightened demand leading up to the Edinburgh Fringe festival held every August, evident by rents surging in July 2023.
During Q3 2023, the most budget-friendly areas to rent outside of the capital were South Shields (£442), Burnley (£446), and Barnsley (£456).
Matt Hutchinson, Director at SpareRoom, notes, “Rents have reached another all-time high across the UK. Even areas historically considered more ‘affordable’ have witnessed rent hikes in the third quarter of 2023, possibly driven by tenants searching for cheaper housing, consequently increasing demand while supply struggles to keep up.”
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