Cost of renting a room rises 11 per cent
The cost of renting a room in the UK has risen by 11 per cent year-on-year, according to the room rental index from Ideal Flatmate.
London has the most expensive rooms to rent in cities in the UK at £745, while this drops to £535 across the country as a whole.
The City of London is the capital’s most expensive district, while Havering is the most affordable, according to the index which covers the first quarter of 2019.
The second-most expensive city is Glasgow at £588, followed by Bournemouth at £575, Cambridge at £562 and Leeds at £548.
A breakdown of the figure shows that Leeds has seen the largest increase in single room costs both year-on-year and over the first quarter, up 32 per cent and 50 per cent respectively.
London ranks second for the largest quarterly and annual growth, with rental prices in Portsmouth and Glasgow up 24 per cent since the last quarter - the third-largest increase. Liverpool has seen the third-largest annual increase at 35 per cent.
In London the highest cost is in the City, at £1,167. The prime sector in London has some of the highest rental costs with Kensington and Chelsea, Westminster, Camden and Hammersmith and Fulham at the top end.
The cheapest is in Havering with an average room rental cost of £565, while Bexley at £583, Enfield at £590, Sutton at £600 and Kingston at £602, have some of the most affordable room rentals in the capital.
The next most expensive places to rent a room are Southampton at £546, Oxford at £544, Bristol at £534, Edinburgh at £525, Portsmouth at £515, Manchester at £464, Leicester at £441, Liverpool at £438 and Sheffield at £428.
But quarter-on-quarter room rents in some cities have fallen, down by 47 per cent in Aberdeen, down 24 per cent in Oxford, down 22 per cent in Liverpool, down 15 per cent in Birmingham, down 13 per cent in Belfast, down 8 per cent in Nottingham and down 4 per cent in Cambridge.
Co-founder of Ideal Flatmate, Tom Gatzen, said that room rents are rising due to high demand and insufficient stock levels and he believes that this trend will continue during the rest of 2019.
He said: “The impending tenant fee ban could see this growth spike further as rental cost are used to recoup lost revenue.”
He explained that London remains the most expensive city in the UK driven largely by the high-end market.
However, even the most affordable London borough is more expensive than the majority of alternative UK cities.
“Outside of London, we’re seeing strong regional growth in areas such as Leeds, Portsmouth, Liverpool and Glasgow and while they remain much more affordable, it demonstrates the diversity of the UK rental market and the growing pockets of popularity that stretch across it,” he added.