Number of affordable London rents continues to shrink

Only five London postcodes still have average room rents below £800 per month, as renters continue to be priced out of the capital, a new survey warns.

According to SpareRoom, rents remain unaffordable for many despite slowing demand, with the average at £978.

The flatshare website warns that years of intense demand for limited rental stock have pushed prices to unsustainable levels.

No such thing as cheap housing in London

Matt Hutchinson, director at SpareRoom, said: “Rents in the capital have been flatlining for a while. While this is clearly better than the years of uplifts that came before, it’s hardly a dream scenario. Years of intense demand on London’s limited rental stock have inflated prices and made cheap rents all too scarce.

“Falling demand and slightly increased supply point to more renters being priced out of inner London, which is why we’re still seeing heightened demand in the suburbs and commuter belt.

“In reality, there’s no such thing as cheap housing in London now. If you do manage to find a room at £800 per month, and these are increasingly endangered, you’d still need to be earning a salary of £32,000 a year to afford the rent.

“This is over and above what many people in the capital earn, especially those just starting their careers.”

Rents remain far above affordable levels

The survey also found that London room rents hit a record high of £1,015 per month at the end of 2023. Despite marginal year-on-year decreases throughout 2025 and into the first quarter of 2026, rents remain far above affordable levels following years of upward pressure driven by post-pandemic demand.

Some areas have seen particularly sharp increases, including W8 (Holland Park), NW7 (Mill Hill), SE4 (Brockley) and SE19 (Crystal Palace), which recorded the highest year-on-year rises.

Meanwhile, the only postcodes with average rents below £800 are E6 (East Ham), E12 (Manor Park), E4 (Chingford), N18 (Upper Edmonton) and E7 (Forest Gate).