Flatshare rents begin to fall as market stabilises

Flatshare rents begin to fall as market stabilises

0:01 AM, 10th January 2024, About 2 months ago

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Flatsharing Londoners have seen their rents drop for the second month in a row, after reaching an all-time high in October, new figures from SpareRoom reveal.

The flatshare site’s data shows that the average monthly room rent in the capital was £1,030 in October, the highest ever recorded.

It then fell to £1,026 in November and £1,019 in December, indicating that the rental market is stabilising after two turbulent years.

The platform says that the ratio of renters to rooms in London, a crucial measure of how the market is balanced, was 4.3 in December 2023, down from a peak of 8.8 in September 2022.

This suggests that the demand for rooms in London has eased, giving renters more choice and bargaining power.

UK saw a decline in average room rents

The rest of the UK also saw a decline in average room rents in December, from £808 to £797, the first fall in a year.

This could be a sign of a seasonal dip, or a reflection of changing preferences and lifestyles due to the pandemic.

SpareRoom director Matt Hutchinson said: “Rents rose to record highs in every single one of the UK’s top towns and cities in 2023, so the picture has been incredibly bleak for renters.

“Our hope is that this slight cooling in the market, coupled with the traditional January increase in supply as cash strapped homeowners take in lodgers, will mean things are starting to turn around.”

‘Government has a huge task on its hands’

He adds: “However, government has a huge task on its hands to make the rental market fit for purpose.

“Tenants are struggling and landlords are leaving the residential market in alarming numbers.

“The worrying fact is that the current tax system incentivises people to offer short term holiday lets over residential lets, which is ridiculous.

“We have a housing crisis, not a hotel room crisis.

“The simplest thing government could do in the upcoming budget is to level the playing field, to make renting to long term tenants a more attractive option.”

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