Spare room demand and prices spike

Spare room demand and prices spike

11:04 AM, 10th May 2022, About 3 weeks ago 1

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New research reveals that Sunderland has experienced the biggest increase in rental demand of all the main UK towns/cities. Data from SpareRoom, showed that listings posted on the platform for rooms in Sunderland saw a 165% increase in demand since Q1 2020, with the average cost of a room also rising by 24% from £327 p/m to £406 p/m in just two years.

Interestingly, the majority of places with the biggest increase in demand are towns/smaller cities such as Swansea (147%), Smethwick (122%) and Barnsley (115%), whilst bigger cities, such as Manchester, Liverpool, Birmingham and Leeds, traditionally more popular with renters saw less of a change.

Top 10 towns/cities that saw the biggest increase in demand

  Location Demand change % (Q1 2022 vs Q1 2020)
1 Sunderland +165%
2 Bradford +152%
3 Swansea +147%
4 Smethwick +122%
5 Barnsley +115%
6 Dundee +113%
7 Huddersfield +110%
8 Truro +103%
9 Eastbourne +101%
10 Birkenhead +99%

 Change in Demand for Key UK Cities

Location Demand change % (Q1 2022 vs Q1 2020)
Cardiff +74%
Glasgow +66%
Birmingham +60%
Sheffield +59%
Newcastle Upon Tyne +54%
Belfast +46%
Manchester +42%
Liverpool +39%
Edinburgh +39%
Leeds +33%
London +11%

Despite being one of the busiest cities in the world, change in rental demand in London is amongst the slowest in the UK, up just 11% since Q1 2020; however, the capital remains the most expensive location, setting renters back an average of £794 per month for a room.

Other locations that saw rent increases above 20% include Bognor Regis (23%), Southall (22%) and Great Yarmouth (20%).

Birmingham was the only location where average rents fell, with a room now averaging £421 p/m, 4% lower than in 2020 (£437 p/m).

Top 10 Locations that Saw the Biggest Rent Increases (2022 vs 2020)

  Location Average monthly room rent Q1 2022 Average monthly room rent Q1 2020 Rent change (%) Q1 2022 vs Q1 2020  
1 Sunderland £406 £327 +24%
2 Bognor Regis £580 £472 +23%  
3 Southall £652 £534 +22%  
4 Great Yarmouth £491 £408 +20%  
5 Belfast £452 £380 +19%  
6 Torquay £504 £424 +19%  
7 Worthing £608 £521 +17%  
8 Truro £539 £464 +16%  
9 Corby £482 £416 +16%  
10 Scunthorpe £425 £369 +15%  

Rent Increases for Key UK Cities

Location Average monthly room rent Q1 2022 Average monthly room rent Q1 2020 Rent change (%) Q1 2022 vs Q1 2020
Glasgow £552 £485 +14%
Cardiff £506 £448 +13%
Manchester £531 £474 +12%
Leeds £484 £433 +12%
Newcastle Upon Tyne £453 £406 +12%
Sheffield £432 £391 +10%
Edinburgh £611 £576 +6%
Liverpool £413 £393 +5%
London £794 £771 +3%
Birmingham £421 £437 -4%

Matt Hutchinson, SpareRoom Director, said: “Cities are often the most expensive places to rent, so as the cost of living rises and rents quickly follow suit, it’s no surprise people are looking for more affordable options. The pandemic and remote working have given people more flexibility and the data reflects that. London and the South East aren’t driving change in demand, as you might have expected pre-pandemic.

“If demand continues to grow across the country, and supply doesn’t start to catch up, we may well see record-high rents in the UK this summer. That won’t be welcome news for renters, especially with bills set to increase again in October.”



Comments

by Mick Roberts

17:26 PM, 13th May 2022, About 2 weeks ago

I've been saying it for years. Years ago, so many people could only afford flats, then last few years single people can only afford HIMO's £500pm all bills including sharing house, but have their own bathroom. Soon it will be just a room they can afford with shared bathroom too. If the Govt & Council & Shelter keep up with their Anti Landlord attacks driving the good Landlords to sell.


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