The average cost of renting a room in the UK has risen to more than £700 a month for the first time, according to data from the property website SpareRoom.
Experts said the data was proof the housing market “isn’t working for anyone”, and that rising rents meant tenants were stuck in unsuitable homes.
The data from one of the UK’s largest home-sharing websites shows that in the second quarter of this year the average monthly cost of a room was £704 – 17% higher than in the same period of 2022.
The largest regional increases were in Northern Ireland – up by 20% year-on-year – closely followed by London and Scotland, both up by 19%.
SpareRoom’s data showed rents had increased year on year in all the UK’s 50 largest cities and towns, with the biggest rises in Edinburgh (up 25%), Middlesbrough (21%) and Manchester (20%).
In London, room rents reached an average of £971 a month.
This figure reflect rooms advertised via SpareRoom that are typically in shared homes. They are in line with other surveys in recent months that have highlighted how sizeable the rent rises are given the shortage of properties.
“Rising rents on new tenancies mean renters face compromises like squeezing into smaller homes or moving further away from workplaces and family,” said the chief executive of Generation Rent, Ben Twomey.
He added that the “dramatic” rental rises also meant people were stuck in “unsuitable homes” that they can afford but would like to leave.
In May, the estate agents Hamptons said the average new monthly rent outside London had passed £1,000 for the first time, and that tenants in Great Britain were typically paying 25% more than at the start of Covid.
Matt Hutchinson, SpareRoom’s director, said: “The housing market simply isn’t working for anyone. Renters and homeowners are struggling and landlords are continuing to leave the market.”
He added that although rents in London remained high, they had fallen slightly in June, “the first time rents have decreased in the capital in over a year”.
Hutchinson said: “Nevertheless, for many people housing will be the key issue for the next general election, so we need to hear something positive and practical from all parties in the coming months. Sticking plaster policies aren’t enough – we need real commitment to fixing this housing crisis.”
Earlier this year, some city mayors in England called for an immediate freeze in rents and a ban on evictions to help tenants deal with the cost of living crisis.
