Room rents continue to skyrocket across the UK, reaching new highs in the third quarter of 2023 according to flatware website SpareRoom.
Room rents rose by 16 per cent year on year when compared to Q3 of 2022, with the average monthly room rent hitting £721.
Average room rents rose by 10 per cent or more in every UK region, every London suburb and almost every one of the UK’s largest towns and cities when compared to Q3 2022. The largest regional increases were seen in Northern Ireland (up 19 per cent), followed by the North East (up 17 per cent), Scotland and the North West (both 16 per cent).
Average monthly room rents in London have soared to £989. There were increases in every London region and every London postcode, with the biggest rises seen in the North of the capital (up 17 per cent), followed by South East, West Central, East and North West regions, all up 16 per cent.
Every London postcode saw an increase in room rents in Q3 2023, with W8 (Holland Park) up 45 per cent, NW7 (Mill Hill) up 38 per cent, and SE28 (Thamesmead) - historically one of London’s cheapest areas for renters - seeing a 36 per cent surge in room rents.
Rents have increased in all the UK’s 50 largest towns and cities, with Belfast (up 25 per cent), Edinburgh and Warrington (both up 22 per cent) seeing the biggest hikes. Edinburgh is the most expensive city/town outside of London with average monthly room rents of £896, beating the London suburbs of Kingston upon Thames (£890), Twickenham (£874) and Barnet (£842).
Rental increases in the Scottish city are likely due to increased demand in the run up to the Edinburgh Fringe festival which takes place every August, as seen by rents spiking in July 2023.
The cheapest areas to rent outside of the capital in Q3 2023 were South Shields (£442), Burnley (£446) and Barnsley (£456).
Matt Hutchinson, SpareRoom director comments: “Rents have reached another record high across the UK. Even areas that have historically been regarded as more ‘affordable’ have seen rents spike in the third quarter of 2023, likely due to renters seeking cheaper housing which in turn is driving up demand with supply not keeping pace.
“If this continues, we could see renters being driven even further from the capital, or perhaps leaving London altogether as the pool of affordable accommodation becomes ever smaller.
“The government needs to take urgent action to tackle the rental crisis head on before this situation becomes untenable. There needs to be a real commitment to act fast and introduce legislation that eases the burden on renters and stabilises rental prices in the UK.”
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HMO room rents often include utilities and Council Tax so most of the increase in the last 2 years was to go towards (not fully cover) the extra cost of utilities since all the small companies went bust. We had factored in gas and electric at the price we had signed contracts for. Those contracts weren't honoured but we couldn't put up rents until the end of the fixed term of the tenancy or 12 months after the last increase.
Just as we had almost covered the massive increase in utilities mortgage rates went up stratospherically. Plus we are now experiencing the full impact of Section 24 but with much higher interest rates than were envisaged when it was dreamt up. If we keep rent increases somewhere in the realm of market rent it is going to take at least another 3 years to get back into the position we were in 3 years ago. That's assuming the government doesn't dream up yet more taxes or charges that will cause us to put up rents even more.
Ultimately if people want a roof over their heads right now either renting or owning is hugely more expensive than it was in the not too distant past.
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