London rents still subdued, according to SpareRoom
The third quarter of 2017 saw London rental prices for rooms in shared houses remain close to their lowest level since 2014, according to the latest SpareRoom Rental Index.
It showed that rents in London dropped to an average of £725 a month in the third quarter of the year. This was a decrease of two per cent during the same period of 2016, when the average rent was £741.
According to SpareRoom, the second quarter of the year saw average rents in the capital fall to £722 a month, which was a three-year low.
Central London fared better than the surrounding areas, with the index revealing that rents had risen by three per cent in the eastern section of the centre and six per cent in the west.
It was also found that the capital was still the UK's most expensive city to rent a room in. Average rental prices in the rest of the country stood at £456 per month, which was a rise of three per cent from the same period last year.
However, the index also suggested that renters are increasingly looking outside of London for affordable homes. It showed that 54 per cent more people are hunting for rooms outside of the capital, with a 1,063 per cent rise in the number of Londoners looking for rooms in Glasgow. Meanwhile, Manchester saw a 223 per cent increase in the proportion of capital residents looking elsewhere.
Matt Hutchinson, director at SpareRoom, said: “Many renters are hitting their affordability ceiling so what we’re seeing is a shift within London towards traditionally cheaper areas in the south east of the city. At the same time, the number of people fleeing London in search of cheaper housing is at a five-year high.
“As new job opportunities open up throughout the UK, and investment pours into tech and business hubs in cities like Manchester and Glasgow, it’s not a huge surprise that Londoners are considering a move outside of the capital.”