Renting in a shared household is the cheapest way to live in London but, with room rents up 37% in just five years, research from flatshare site SpareRoom has revealed.
The average London room rent rose from £728 per month in Q3 2020 to £995 per month in Q3 2025.
Rents first passed £900pm at the end of 2022, peaked at a record high of £1,015pm at the end of 2023 and are now close to £1,000pm once more.
Matt Hutchinson, director at flatshare site SpareRoom, said: “Because of chronic undersupply in the London rental market, rents are stubbornly high and meeting affordability criteria – not spending more than 30% of your salary on rent – is rarely possible.
“When even the cheapest room in London is above £700 per month, hardworking people the capital relies on to function have little choice but to leave.”
It’s still possible to find average rents below £800 per month in E12 (Manor Park), E6 (East Ham), N9 (Lower Edmonton) and E4 (Chingford). By postcode, average rents in E12 have fallen the most (-11%) year on year.
Those on tight budgets should consider searching in the south east of the capital, where the average rent is lowest at £951 per month. But take note that, in Q3, four SE postcodes saw some of the highest year-on-year rent increases in the whole of London: SE3 (Blackheath), SE24 (Herne Hill), SE4 (Brockley), SE9 (Eltham).
North London has seen the highest year-on-year rent increase (+2.1%) in Q3 2025.
