It’s not great news for Generation Rent. New data from RentTech company Goodlord reveals average rent prices have skyrocketed by £194 in June – the largest single rent rise on record.
This rise comes amidst UK inflation hitting a 40-year high and has now brought the average cost of rent across England up to £1,244. That’s an increase of 25% since the start of the year in January 2022.
The rise in rent has been felt most strongly in the North-West, where monthly rental costs have risen by 45% since the previous month. This brings the average cost of rent in the North-West to £1,214, an enormous £392 increase in a single month.
Whilst renters all across the UK regions are feeling the pinch, prices in the capital are hitting a different high altogether. Data from one of the UK’s leading flat-share sites, SpareRoom , suggests London rents are rising faster than anywhere else in the country, with the average monthly room rent in London having passed £800 for the first time, up 15% from £708 in Q2 2021.
To help those looking for their next move, SpareRoom has compiled a list of the most and least affordable places to rent in the UK, both in the capital and beyond.
In London, the most affordable postcodes are mainly in the southeast and east regions. The cheapest area to rent a room in the capital is still Abbey Wood (SE2) at £616, followed by Manor Park (E12 ) at £620 and East Ham (E6) at £621.
As you’d expect, the least affordable postcodes are in central and west London areas - West End/Soho (W1) had the highest room rents at £1,299 followed by Westminster/Belgravia/Pimlico (SW1) at £1,097 and Earl’s Court/West Brompton (SW5) at £1,060.
London's most expensive and least expensive rental postcodes:
Outside of the capital, the most expensive areas to rent in Q2 2022 were Kingston Upon Thames (£727), Twickenham (£711) and Barnet (£709). Conversely, the cheapest areas to rent a room were Darlington at £391, Huddersfield at £394 and Middlesbrough at £396.
Matt Hutchinson, SpareRoom director, said: “With rents at record highs, inflation higher than it has been for decades, and energy bills set to rise again in October, just before winter kicks in, renters are going to really struggle."
"It’s time for the government to realise that simply handing out money to help people pay their rent isn’t the long-term solution – we need serious policies to provide affordable housing for everyone. In the meantime, hopefully, this list of the most and least expensive areas will help people looking to make their next move.”
