According to new data from flatshare website SpareRoom, London rents are still up 1% compared to Q3 2023. However, they have fallen every quarter so far in 2024, and are increasing at a slower pace than the national average, which was up 4% in Q3 2024 vs. Q3 2023.
The region within the capital that saw the biggest increase was East Central (+4%), whilst North and West remained the same (0%) and South West saw rental decreases of 1%.
Many of London’s postcodes have seen a continued decrease in 2024 – marking the first time in almost 3 years that the market has experienced a decline in average rent prices like this. The postcodes that have witnessed the biggest drops are W8, Holland Park (-11%) and N2, East Finchley (-11%), followed by SW7, South Kensington / Knightsbridge and SW3, Chelsea (both -7%).
London’s most affordable areas by monthly room rent are E4, Chingford (£777), E6, East Ham (£778) and E7, Forest Gate (£785).
The ratio of people looking for rooms in the capital is 3.67, down from 5.72 and the average room rent in London is £995. Outside of London, the most expensive city to rent in is Edinburgh, with an average room costing £920 per month.
Overall, looking at the data year-on-year, the news is looking more positive for renters as the London market begins to show signs of rebalancing.
Matt Hutchinson, Director at SpareRoom, comments: “Although rents are still rising throughout the UK, the rate of growth is slowing, and the London market in particular is showing signs of stabilising, especially when it comes to the supply: demand ratio. While this is an encouraging start, there’s still a long way to go for London renters when it comes to accessibility and affordability.”
