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Is the rental market FINALLY improving?

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It's been a very difficult time for renters as 2023 saw record high rents in every single one of the UK’s top towns and cities, read more about that in our most recent rental index.

And whilst average rents across the country are still at an all time high there could be some signs of improvement…

London rents fall for two consecutive months

London rents fell for two consecutive months for the first time since February 2021. The average monthly room rent in the Capital was £1,030 in October, a record high. It fell to £1,026 in November and then again in December to £1,019, and, while rents haven't fallen by much, this is still a sign that the rental market is (hopefully) steadying after a chaotic 2 years.

London’s ratio of renters to rooms, a key indicator of how the market is balanced, was 4.3 in December 2023, having been as high as 8.8 in September 2022.

renters-to-rooms--2-

Our hope is that this slight cooling in the market, coupled with the traditional January increase in supply as cash strapped homeowners take in lodgers, will mean things are starting to turn around.

However, government has a huge task on its hands to make the rental market fit for purpose. Tenants are struggling and landlords are leaving the residential market in alarming numbers.

*Data is for London & surrounds. Data is based on all ads live in that month and all people actively looking for a room in that month (majority of ads include bills).