Balance has returned to the UK rental market following a "chaotic few years" according to Spareroom, as rent hikes slow across the country.
SpareRoom’s Q4 2024 Rental Index has revealed that London is the only UK region where rents fell, with rents declining for the fourth consecutive quarter.
In Q4 2024, the average room rent in London decreased by 2%, from £1,015 in Q4 2023 to £993, marking the most significant drop in London rents since Q1 2021. The most expensive London postcode to rent in is SW3 at £1,488 (-9% YOY) followed by SW1 at £1,244 (with an annual decrease of 13% YOY).
Average UK room rents rose by just 1% year-on-year from £738 to £774 - the smallest increase seen in 2024 - offering some relief to renters who faced higher increases throughout 2024.
Outside of the capital, the most expensive towns/cities to rent a room in include Twickenham (£928), Kingston-upon-Thames (£920), and Epsom (£855).
Interestingly Edinburgh no longer sits on this list, however, during the festival season it was ranked as the most expensive place to rent in the UK outside London. At the other end of the spectrum, Bootle remains the cheapest town to rent a room, with an average rent of £447, closely followed by Barnsley (£465) and Bradford (£473).
Whilst rents continue to increase, no UK region has seen increases above 5%, with London being the only region where rents fell in Q4. The North West saw the largest increase, with rents rising by 5% (£608), followed by East Anglia and the South West both at 3% respectively (£669 and £665).
Overall, looking at the data year-on-year, the news is looking more positive for renters as the market begins to show gradual stabilisation at the end of 2024, offering some much-needed relief to renters facing affordability challenges.
“The past few years have been incredibly tough for renters, not just in London but across the whole of the UK," noted Matt Hutchinson, Director at SpareRoom. "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 said.
Matt concluded, "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.”