According to SpareRoom, the average room rent in just five London postcodes is now below £800 a month, highlighting the extent of rising costs in the capital’s flatshare market.
The platform’s data shows that the areas of E6 (East Ham), E12 (Manor Park), E4 (Chingford), N18 (Upper Edmonton) and E7 (Forest Gate) are the only places where the average room rate remains below the £800 threshold.
The figure marks a significant contrast to 2020, when 81 London postcodes recorded an average rent of less than £800, including 50 where rents were less than £700 per month.
Across the capital, the average room rent is now £978 a month. According to SpareRoom, although this is down 0.5% year-on-year, the aggregate figure masks variation at postcode level.
Some areas have seen significant growth over the past year, with W8 (Holland Park), NW7 (Mill Hill), SE4 (Brockley) and SE19 (Crystal Palace) recording the largest annual growth.
Market conditions have also changed, with demand for rooms in London falling by 12% compared to a year ago, while supply has increased by 4.8%.
Despite stabilizing after room rents reached a peak of £1,015 per month at the end of 2023, prices remain higher than pre-pandemic levels, when the London average was £773 per month.
Matt Hutchinson, director of Spareroom, said: “Years of intense demand on London’s limited rental stock have driven prices up and made cheap rentals very rare. Falling demand and slightly increased supply points to more renters moving out of inner London, which is why we’re still seeing increased demand in the suburbs and commuter belts.
“In fact, there is no such thing as cheap accommodation in London anymore. If you manage to find a room at £800 a month – and these are increasingly under threat – you will need to earn a salary of £32,000 a year to afford the rent. This is more than many people earn in the capital, especially those just starting their careers.”