New data from SpareRoom reveals a subtle shift in the UK rental landscape: room rents in London have dropped 1% year-on-year, now averaging £982 per month, while Birmingham has seen the sharpest fall among the UK’s 50 largest towns and cities, with a 4% annual decrease.

This cooling comes as renters increasingly seek more affordable alternatives in outer boroughs and commuter towns. In areas like Epsom, Twickenham, and Kingston upon Thames, demand remains high – not just from families, but now from flat-sharers priced out of central areas.

In Birmingham, nearby towns like Smethwick and Solihull are attracting renters drawn by lower prices and reasonable travel times.

🔍 National Picture: Stability with Regional Spikes

While London is the only region to see a rent drop, many other areas have remained flat. The East Midlands, North East, West Midlands, Scotland, and Yorkshire & Humberside all reported 0% annual change.

By contrast, Northern Ireland leads the way with a 5% increase, followed by East Anglia at 4%.

Biggest year-on-year increases:

• 🏖️ Blackpool: +9%

• 🌊 Southend-on-Sea: +6%

• 🏛️ Oxford, 🛳️ Ipswich, and 🎓 Newcastle: all +5%

Biggest fallers:

• 📉 Birmingham: -4%

• 🔻 Bolton, Bradford, Edinburgh, Nottingham: all down 3%

🏡 Where Renters Pay the Most — and the Least

Most expensive towns/cities (outside London):

• Kingston upon Thames – £926

• Twickenham – £914

• Barnet – £865

• Epsom – £839

• St Albans – £838

Most affordable towns/cities:

• Bootle – £462

• Bradford – £466

• Burnley – £468

• Grimsby – £473

• Middlesbrough – £473

💬 Comment from SpareRoom Director, Matt Hutchinson

“In major cities like London and Birmingham, rents have flatlined, and even marginally decreased, as the post-pandemic demand spike subsides. These cities have simply become too expensive. Remote workers are opting for longer commutes in exchange for cheaper rents.”

“But look at the market over several years, and rents still trend upwards. They rise, then plateau – but rarely fall meaningfully. With demand still outstripping supply, affordability will remain a major issue for renters.”

📊 UK Average Room Rents by Region (Q1 2025)