As the pandemic took hold and younger tenants headed out of town, so room rents took a hit. The lack of space in shared accommodation saw many younger renters move back in with parents during lockdowns and at their low, room rents outside of London fell 10.1% year-on-year in January 2021 to average £538 pcm. However, the competitiveness of the London rental market is such that room rents in the capital only took a 5% hit.
Towards the end of last year, the easing of restrictions brought about a return to the office, luring people back to cities. In January, room rents across Great Britain rose at their fastest pace in two years, up 8.4%. And for the second consecutive month, the average cost of a room surpassed its pre-pandemic high of £622 pcm recorded in January 2020.
In London, room rental growth also accelerated. Last month, the average cost of room in the capital rose to £733 pcm, 6.0% higher than the same time last year. This marked the strongest annual growth in six years. The average room in the capital now costs 43% less than a one-bed.
Due to fierce competition, rooms in London are now letting quicker than ever before. Nearly half (46%) of rooms in the capital let within a week last month, up from 16% during the same time last year. It took 13 days on average to let a room, down from 75 days in January 2021. The proportion of homes let within a week in Great Britain has also risen – 39% compared to 17% in January 2021.Like the wider rental market, the lack of stock has put pressure on rents. Given there were 31% fewer rooms available to rent across Great Britain last month compared to the same time last year, we’re likely to see room rental growth remain strong for the next few months.
