The area of London where it is cheapest to rent a room
Key Points
- The supply of rooms to rent in London is falling, but one area remains the cheapest, with strong supply of flatshares available.
- Data from flatsharing site SpareRoom shows a reduction in flatshare supply in inner London, which could lead to increased prices in future.
- The reduction in supply comes after the introduction of the Renters' Right Act, which introduced new protections for tenants and made it more difficult for landlords to evict occupants without cause.
- The most expensive area to rent a room in inner London is west London, where the average cost of a flatshare is £1,043 per month.
The supply of room rentals in inner London has just begun to fall, meaning price increases could be on the way for many renting in shared accommodation.
However, there are certain areas of London that are more resilient where supply remains strong and prices relatively low.
New data from flatsharing website SpareRoom shows that in the second quarter of 2026, after the Renters’ Rights Act came into effect, the supply of flatshares in inner London fell by 5%, marking the end of a three-year run of growth in supply.
However, this was not the case across all inner London areas. In east London, supply has continued to stay strong, while in areas such as north-west London, flatshare rental supply dropped by 9.8% year-on-year.
East London is easily the region with the most supply, with more than twice the number of rooms available to rent than north London, despite the latter also being among the most affordable regions to rent a room in within inner London.
The average price of renting a room in east London is currently £933, and it is £937 in north London. By comparison, the average price of a room in west London, the most expensive area with the least supply of rooms for rent, is sitting at £1,043.
Below are the year-on-year changes in room rental supply in inner London postcodes and the average room rent for Q2 2026, revealing that east London remains the cheapest area in inner London to rent a room in:
| Quarter | East | North | NW | SE | SW | West |
|---|---|---|---|---|---|---|
| Q2 2026 | -0.1% | -6.0% | -9.8% | -1.9% | -9.8% | -4.1% |
| Q2 2025 | 7.8% | 9.9% | 15.4% | 5.3% | 5.7% | 8.1% |
| Q2 2024 | 34.1% | 18.1% | 30.6% | 29.9% | 26.4% | 20.7% |
| Q2 2023 | 21.3% | 14.3% | 14.9% | 18.7% | 12.6% | 7.6% |
| Ave monthly room rent – Q2 2026 | £933 | £937 | £977 | £961 | £1,039 | £1,043 |
Flatshares growing in outer London
While the supply of inner London flatshares has now recorded a decline for the first time in three years, the general trend is still increasing, especially in more affordable areas further out from the centre of the city.
While the average room rent in inner London is £979, it is only £794 in outer London, with the latter area still seeing supply growth of 0.9% even after the effect of the Renters’ Rights Act.
With supply falling, however, the price of room rentals is expected to increase, which could hinder the benefits of the affordability-based agenda of recently appointed Prime Minister Andy Burnham.
The below shows how the supply of room rentals has changed year-on-year, according to data from SpareRoom.
| Quarter | Inner London | Outer London | Greater London (Inner + Outer) |
|---|---|---|---|
| Q2 2026 | -5.0% | 0.9% | -3.4% |
| Q2 2025 | 7.8% | 15.5% | 9.8% |
| Q2 2024 | 27.2% | 41.5% | 30.6% |
| Q2 2023 | 16.6% | 19.2% | 17.2% |
| Avg. monthly room rent – Q2 2026 | £979 | £794 | £915 |
“It’s no coincidence the area of London with the most rooms available also has the cheapest rent,” said SpareRoom director Matt Hutchinson.
“Where supply is most squeezed, rents will rise faster. It’s a good reminder what needs to happen if renters are to see any meaningful decreases in housing costs.”
“The big problem, of course, is that supply is now falling everywhere, it’s just not falling as fast in east London,” he said.
“The new Prime Minister and his cabinet will have their work cut out to deliver cost of living savings in the absence of enough rental supply.”
