Average UK room rents soars as chronic undersupply squeezes renters

UK room rents have reached record-breaking levels, as undersupply and high demand leave renters struggling.

According to data by SpareRoom, the UK average room rent has reached an all-time high of £753 per month.

Over the past five years, rents in the UK have risen 28% and in London by 37%.

We need to address the huge problem of chronic undersupply

Findings by SpareRoom reveal regionally, Wales saw the highest year-on-year increase in room rents, up 2.3% to £586 per month, followed by South West England (+1.5%). Rents in Scotland saw a year-on-year increase of 0.7% but, at £723 per month, the average rent here is now at a record high.

Of the most popular towns and cities with the steepest year-on-year rent rises, several are key commuter areas for London: St Albans, just a 20-minute commute to St Pancras, Brentwood on the Elizabeth line, as well as Redhill and Basingstoke.

Keighley, just a half-hour train ride from Leeds, has seen rents rise 10% year-on-year. However, at £574 per month, the average room rent is fast catching up to Leeds (£578 per month).

Places like Wolverhampton, Telford and Warrington have seen rents rise 6% in Q3. All three are commuter hubs to Birmingham, Liverpool and Manchester. Renting a room in Warrington now costs, on average, £589 per month, compared to £701 in Manchester.

Matt Hutchinson, director at flatshare site SpareRoom, says renters are struggling to afford their rent.

He said: “There aren’t many people who can say their wages have risen 28% over the past five years. And when pay rises aren’t in line with rent increases, keeping within the threshold of affordability, i.e. spending no more than 30% of your income on rent, quickly becomes impossible.

“We need to address the huge problem of chronic undersupply in the rental market creatively. Encouraging more people to rent out unused rooms in their homes to lodgers, would offer a desperately needed supply injection. There are around 28 million empty bedrooms in England, Wales and Scotland. Freeing up just 5% of them would provide affordable accommodation for 1.4M people.”

Rents are stubbornly high in London

In London, renting a room now costs £995 per month on average, 37% more than five years ago.

In places such as the WC2 Strand/Holborn postcode average room rents now cost £1,674 and in W1 West End/Soho rents cost £1,504.

Matt Hutchinson, director at flatshare site SpareRoom, said: “Because of chronic undersupply in the London rental market, rents are stubbornly high and meeting affordability criteria, not spending more than 30% of your salary on rent, is rarely possible. When even the cheapest room in London is above £700 per month, hardworking people the capital relies on to function have little choice but to leave.”