Rent fall could be start of market turnaround, says website chief

Newly released data by flatshare website SpareRoom reveals average rental prices in Greater London have seen a drop.

Average rental prices in February 2024 fell from £1,024 to £1,009 for the first time since July 2023.

This could be explained due to supply and demand levels stabilising with more rooms available on the market and fewer potential renters on the look for a place to live in Greater London. 

At the height of rent rises, SpareRoom data suggested that in late 2022 as many as nine renters were competing for a room in the capital with new findings indicating that number has dropped to four renters for every available room on the market. 

SpareRoom says rents in July last year were averaging at £995 and rose to £1,024 in January - then fell to £1,009 last month.

Matt Hutchinson, Director of Communication for SpareRoom comments: “Since the summer of 2022, London rents have rocketed as post-pandemic demand soared and supply failed to keep up. 

“However, the number of people looking per room available is falling, which means that rents, although still ridiculously high, have started to follow suit. Average London rents in February saw the biggest drop in a single month since the start of the pandemic.

"It's probably wishful thinking to presume rents will fall as fast as they rose, that never seems to happen. However, this could be an early sign that the market is rebalancing, after the most turbulent period we've seen in the 20 years we've been running SpareRoom.”

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