Renting in London:rent rises show signs of cooling off - but the capital remains the UK's most expensive city

 Room rent price hikes stall as Londoners "simply can’t afford to keep paying more".

Rental rates in London are finally showing signs of cooling down, with room rates up by just two per cent in the past year, compared to the seven per cent hike recorded between 2014 and 2015. 

However, the capital is still the most expensive city to rent a room in the UK, now costing an average of £741 a month, according to the latest London Rental Index from SpareRoom.co.uk.

“Nervousness surrounding Brexit has no doubt played a part, but the two per cent growth in rents reflects an issue even closer to home - Londoners simply can’t afford to keep paying more," says Spareroom's Matt Hutchinson.

Rents have fallen by an average of one per cent in London's most expensive areas - east central and west London postcodes, including St Pauls, Holland Park, Chelsea and West Brompton - where room rents continue to top £1,000 a month.

It's little surprise that the cheapest areas are located in the up-and-coming areas on the fringes of the city - south east London's Thamesmead and Abbey Wood, east London's Manor Park and north London's Edmonton, where room rents average under £550 a month.

At almost half the central London room rent rates, prices in these areas are not expected to remain stable for long.

“Anyone hoping to nab a bargain in the relatively affordable areas of East and South East London needs to move fast," advises Hutchinson.

"Although there’s currently a high supply of rooms, rents are starting to increase far more quickly in these areas, with nine per cent increases in West Norwood (£617) and a 10 per cent increase in East Ham (£566)."

With almost half of London's total room supply found in east London, it's one of the least competitive areas to find a room - with just three people looking for every room available, compared to the London average of five.

Follow Lizzie Rivera on Twitter @LizzieRivs


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