London renters face rising costs and shrinking supply

The rental market in London is facing significant challenges for young professionals and graduates. According to data from SpareRoom, the average cost of renting a room in inner London is currently £979 per month.

While affordable housing is typically defined as costing no more than 30 per cent of take-home pay, as many as 40 per cent of London renters are now spending more than half of their income on rent. This financial pressure is compounded by a dwindling rental supply, which has seen a 5 per cent drop in flat share availability following the implementation of the Renters’ Rights Act and increased taxes on landlords.

Matt Hutchinson, communications director of SpareRoom, noted that competition is intensifying as graduates compete with middle-aged workers who have been priced out of solo renting or home ownership.