London room rents have fallen by 1% year on year, now averaging £982 per month, amid lower demand from renters. In Birmingham, rents have dropped for a fourth consecutive quarter to £555 per month, as demand grows in commuter towns surrounding the UK’s second largest city*.

Regionally, Northern Ireland and East Anglia recorded the highest year-on-year rent increases — 5% and 4% respectively.  Meanwhile, rents remained flat across the East Midlands, North East, Scotland, West Midlands, and Yorkshire & Humberside.

Among the UK’s 50 largest towns and cities, Blackpool saw the biggest year-on-year increase in rents (up 9%), followed by Southend-on-Sea (up 6%). Birmingham was the biggest faller, with rents down 4%.

New data from SpareRoom’s Q1 2025 Rental Index confirms that London room rents have dipped by 1% year on year to an average of £982 per month. Suburban areas are experiencing strong demand, particularly those offering relative affordability — such as Epsom, Twickenham, and Kingston upon Thames. Once popular with growing families, these areas are now increasingly sought after by renters in shared housing too.

A similar trend can be seen in Birmingham. Of the 50 largest UK towns and cities, Birmingham has seen the largest drop in average rents — down 4% year on year — driven by high demand in nearby commuter towns like Smethwick and Solihull.

Regionally, London is the only area to register an annual decrease (-1%), while rents across the East Midlands, North East, Scotland, West Midlands, and Yorkshire & Humberside have remained unchanged. In contrast, Northern Ireland and East Anglia have seen the strongest growth, with year-on-year increases of 5% and 4% respectively.

Among the UK’s 50 largest towns and cities:

• Blackpool leads with a 9% rise.

• Southend-on-Sea follows with 6%.

• Ipswich, Newcastle, and Oxford each saw 5% increases.

• Meanwhile, Bolton, Bradford, Edinburgh, and Nottingham experienced 3% declines.

Outside of London, Kingston upon Thames has the highest average rent at £926 per month, while Bootle offers the most affordable rooms, at just £462 per month.

Commentary from SpareRoom

“In major cities like London and Birmingham, rents have flatlined or slightly decreased as the post-pandemic demand spike finally begins to ease. These cities have become too expensive, and many renters who can work remotely are now choosing areas with longer commutes but lower costs,”
says Matt Hutchinson, Director at SpareRoom.

“But zoom out and look at the rental market over years, not months, and the upward trend is clear. Rents rarely fall significantly — they rise, plateau, then rise again. With wages failing to keep up with rent increases and the soaring cost of living, affordability continues to decline. As long as demand outweighs supply, rents will keep heading north.”

UK Average Monthly Room Rents by Region (Q1 2025)

Most & Least Expensive Towns and Cities (Q1 2025)

Rental Demand Over Time

A graph showing the number of renters per room available over the past five years.

Source: SpareRoom.co.uk