London room rental prices exceed £1,000 amid housing supply drop

The average cost of renting a single room in the United Kingdom has reached a record high of £769 per month. In central London, prices for a room in inner boroughs have surpassed £1,000, rising from £990 in the third quarter of the previous year to £1,002 in the same period of 2026.

Data from the flatshare platform SpareRoom indicates that the supply of advertised rooms in London has dropped by 7.3 per cent compared to last year. Industry experts, including SpareRoom director Matt Hutchinson, attribute this decline to the Renters' Rights Act, which came into force in May. While the legislation aims to increase tenant security by banning 'no fault' evictions and limiting rent increases, it has reportedly caused some landlords to exit the market due to increased compliance efforts and perceived lower investment returns.

Regional averages vary across the UK, with Scotland at £726, South East England at £709, and the West Midlands and Wales both near £594. A spokesperson for the Ministry of Housing stated that the Renters' Rights Act is designed to protect tenants from excessive increases by limiting rent rises to once a year and banning rental bidding wars.