Room rents hit record highs as supply drops

Supply levels across England have fallen as rents continue to climb to record highs, according to new research.

Figures from SpareRoom show that the average UK room rent has reached a new high of £769 per month, with rents hitting record levels in seven of the UK’s nine regions.

In inner London, average monthly room rents have now surpassed £1,000.

Renters’ Rights Act has driven landlords away

According to findings by SpareRoom, after the introduction of the Renters’ Rights Act in England in May, UK room rental supply fell -4.7% year on year in Q3.

South West England has seen the biggest year-on-year rent rise (+2.3%) and room rents have hit record levels at £689.

Room rental supply fell 7.3% in inner London while the average rent rose to £1,002 per month in the third quarter of 2026, just shy of the record high of £1,003 set in Q4 2023.

Matt Hutchinson, director at flatshare site SpareRoom, warns the Renters’ Rights Act has caused landlords to leave the market.

He said: “Those navigating the rental market today will find they’re faced with inflated prices and shrinking supply. The pressure is coming from several directions. Supply is down because the Renters’ Rights Act has driven away landlords in England.

“Some feel the investment opportunity is no longer worth the effort of compliance. Plus, councils across the country are cracking down on HMOs when the need for affordable rooms has rarely been more urgent. Rents are rising, not just because supply is down, but also because a knock-on effect of banning bidding wars is that asking rents are being set higher.

“Affordable housing is supposed to be a political priority, yet the outlook for meaningful improvement is bleak as the government hasn’t yet acknowledged these problems in the rental market. The Renters’ Rights Act is a solid step in terms of tenant security, but there has to be a second push to tackle affordability, otherwise renters end up in secure tenancies they still can’t afford.”

East London still has lowest average room rent

The figures also reveal East London still has the lowest average room rent (£958 per month) and is seeing the smallest year-on-year rent increases too. By contrast, in south-west London, the average rent is now £1,065 per month and rising 2.4% year on year.

The most expensive postcode in London is SW7, spanning South Kensington and Knightsbridge, where the average monthly room rent (£1,682) is more than double that of the cheapest postcode, E12 Manor Park, at £752 per month.

The biggest year-on-year rent rise in Q3 was seen in Northern Ireland (+7%), as increases in Belfast (+6.8%) outpaced other UK cities.