- Tenants confronted hovering costs lately amid excessive demand and low provide
- Cost of renting a room in London has dropped to lowest degree since July final yr
The price of renting a room in London noticed the largest month-to-month fall because the begin of the pandemic in February, in line with new figures.
Tenants have confronted hovering prices lately amid excessive demand and a low provide of accessible properties.
This is especially the case in London, the place rents are typically larger than the remainder of the nation.
However, unique figures from SpareRoom recommend the price of renting a room in Greater London has dropped from a mean of £1,024 in January this yr to £1,009 the next month.
Tenants have confronted hovering prices lately amid excessive demand and a low provide of accessible properties
It is the primary time the month-to-month price has been as little as this since July final yr. And it’s the largest drop in the price of renting a room because the begin of the pandemic.
The final time there was such a big drop was in March 2020, simply as lockdown kicked in, with a month on month drop of £36.
The monetary easing in the price of renting brings tenants some a lot wanted monetary reduction following the ‘dizzy heights of final summer time’ when competitors for rental properties was fierce.
| Jul-23 | £995 |
| Aug-23 | £1,013 |
| Sep-23 | £1,027 |
| Oct-23 | £1,030 |
| Nov-23 | £1,026 |
| Dec-23 | £1,019 |
| Jan-24 | £1,024 |
| Jan-24 | £1,009 |
| Source: SpareRoom |
SpareRoom stated that whereas the quarterly information will probably be launched in just a few weeks, February’s drop means that ‘this might be an early signal that issues are calming’ within the rental market.
It went on so as to add, nonetheless, that the drop is usually pushed by the variety of folks in search of rooms. This is against the variety of rooms obtainable falling.
SpareRoom stated there have been as many as 9 tenants per room to lease on the peak of the imbalance in September 2022, in comparison with the present common of 4 folks.
These figures have been rounded up from 8.8 and three.5 respectively, and replicate Greater London.
The common price of renting a room has climbed considerably because the begin of 2020 after a lull early within the pandemic was adopted by a pointy rise
SpareRoom defined there are fewer folks trying in addition to extra rooms available on the market.
Matt Hutchinson, of SpareRoom, stated: ‘Since the summer time of 2022, London rents have rocketed as post-pandemic demand soared and provide did not sustain.
‘However, the variety of folks trying per room obtainable is falling, which implies that rents, though nonetheless ridiculously excessive, have began to comply with go well with.
‘Average London rents in February noticed the largest drop in a single month because the begin of the pandemic.’
Experts steered that the rental market appeared ‘calmer’ in comparison with the ‘dizzy heights’ of final summer time
He added: ‘It’s most likely wishful considering to presume rents will fall as quick as they rose, that by no means appears to occur.
‘However, this might be an early signal that the market is rebalancing, after probably the most turbulent interval we have seen within the 20 years we have been working SpareRoom.’
And he went on to recommend that the pattern might quickly filter by way of to the remainder of the nation.
‘So far, rents throughout the UK have not come down in the identical manner, however it’s doubtless that that is the beginning of a ripple impact that may unfold over the approaching months, until demand shoots up once more,’ he stated.
‘Millions of renters throughout the nation will definitely be hoping the worst is now over.’
SpareRoom stated there have been as many as 9 folks on common trying per room to lease in September 2022 in comparison with the present common of 4 folks
Some lettings brokers agreed that the rental market appeared ‘calmer’ in comparison with the ‘dizzy heights’ of final summer time.
Harriet Scanlan, of Richmond property brokers Antony Roberts, stated: ‘The letting market continues to develop, providing tenants extra alternative. We are thrilled to see an inflow of landlords inviting us to worth their properties for lettings in current weeks.
‘Despite the rise in inventory available on the market, landlords are nonetheless reaping the advantages of a thriving market. Void durations stay minimal, reflecting sustained demand for rental properties.
‘That stated, we’ve moved on from the dizzy heights of final summer time. Tenants have extra alternative, can take their time and be extra thought of.
‘We haven’t skilled a drop in rents as such, however we’re finishing up extra viewings per property and the market appears calmer.’
SpareRoom stated the common month-to-month price of renting a room in Greater London was £995 in July final yr, earlier than rising to £1,013 the next month.
The figures continued to climb, reaching £1,027 in September final yr after which £1,030 in October 2023.