The average rent for a room in inner London has officially exceeded £1,000 per month for the first time, according to new figures from the renting website SpareRoom. The average cost of a room in a house share in inner London is now £1,002 per month.
Salary needed to afford rent
SpareRoom’s director, Matt Hutchinson, said renters will need a gross salary of at least £40,000 to be able to afford this amount. “That excludes many, including some essential and service workers, and young people starting their careers,” he said.
“Choked supply increases rents, so tumbling rental stock in the capital should concern everyone, as should the absence of any plan to improve the situation. The Government must acknowledge the problem and do everything in its power to encourage and incentivise new supply,” Hutchinson added.
Most expensive areas
The study also identified the most expensive parts of the capital to rent in, with many of the top spots given to prime postcodes. SW7, covering areas including South Kensington and Knightsbridge, has an average rental price of £1,682 per month. W1, spanning the West End and Soho, is similarly costly at £1,519 per month, while Chelsea averages £1,472.
Other expensive areas include WC1 (Bloomsbury/High Holborn) at £1,447, SW5 (Earl’s Court/West Brompton) at £1,397, and W8 (Holland Park) at £1,340.
Cheapest areas
Despite the overall rise, there are still areas where rents are below the £1,002 average. The cheapest area for tenants is E12, covering Manor Park, where the average room costs £752 per month. East Ham (E6) follows at £755, Winchmore Hill (N21) at £761, and Forest Gate (E7) at £781.
Plaistow (E13) is listed at £789, and Nathan Khider, owner of Nathan K Real Estate, previously told Metro that “East London is always a desirable area and will continue to attract first-time buyers and investors drawn to its affordability and ongoing regeneration.” He added: “Young people are being priced out of Hackney, which has become gentrified and really expensive. Instead, Mile End, Plaistow, Canning Town and Stratford offer much better value for money.”
