Renters leave London as commuter towns see surge in demand

The number of people looking for rooms to rent in London has fallen sharply as rising rents push renters to look elsewhere, new research reveals.

According to data from SpareRoom, demand for rooms in the capital has dropped by almost a fifth since 2020.

The flatshare website says commuter towns outside of London have seen an increase in demand.

Growing demand for more affordable locations

According to SpareRoom, the area with the highest increase in renter interest in the country is Waltham Abbey (+113%), an Essex market town where the average room rent is now £784 per month. This compares with an average of £978 in inner London, and reflects growing demand for more affordable locations within commuting distance.

Parts of outer London, where rents are also lower than inner London at an average of £811 per month, are also seeing notable increases in searches by flatsharers.

These include Hillingdon (+62%), Sudbury in northwest London (+60%), Enfield (+46%), Ruislip (+40%) and Heston in Hounslow (+39%).

Beyond outer London, several Home Counties are also growing in popularity among flatsharers. In Hertfordshire, rising hotspots include Baldock (+62%) and Broxbourne (+60%), both served by fast rail links into London.

Elstree (+36%), Borehamwood (+32%) and Radlett (+31%), all well connected to central London via rail, have also seen search activity rise by around a third.

Too expensive to live in the capital

Matt Hutchinson, director of flatshare site SpareRoom, explains more people are moving outside of London to affordable areas.

He said: “Area searches give us a sense of where the market is headed and, in this case, it’s out of inner London and into commuter territory. Even for those who are happy to share with housemates, it may be just too expensive to live in the capital today after years of rent rises.

“And it’s not only rent, it’s the higher cost of living to contend with too. Remote working offers the possibility of moving further out without the expense and hassle of a daily commute.

“You also have to consider the demographics of flatsharers today. Younger people are increasingly priced out of the rental market, and people are flatsharing to later in life. The stereotype of the young professional housemates living it up in the city is becoming less recognisable. Priorities are changing.”

The data also shows that in Surrey, Walton-on-Thames (+50%), 25 minutes from Waterloo, Reigate (+47%), Banstead (+45%), Virginia Water (+43%), and Guildford (GU1 +33% and GU2 +27%) have seen the highest annual increases in flatsharer searches.