The average cost of renting a room in inner London has climbed to £1,002 a month in the third quarter of 2026, according to new figures from flatshare site SpareRoom. That is just £1 short of the all-time high of £1,003 recorded in the final three months of 2023.
At the same time, the number of rooms available to rent is shrinking. SpareRoom's data shows room availability fell by 7.3 per cent year-on-year in inner London and by 1.7 per cent in outer London, adding to the pressure on tenants already facing near-record costs.
Where rents are rising fastest
Some of the steepest rent increases have been seen in south-west and south-east London, with Wandsworth, Richmond, Wimbledon, Greenwich and Dulwich among the areas recording the biggest rises.
For those seeking a cheaper room, parts of east and north-east London still offer rents below £800 a month. East London is the cheapest postcode region overall, with average monthly room rents of £958, compared with £1,065 in south-west London. That means tenants could save £107 a month — or £1,284 a year — by living in the east of the capital.
Supply falls across the capital
The data also shows year-on-year supply changes across London's postcode areas. East London saw availability drop by 6.5 per cent, while the EC area recorded an 11.3 per cent fall. The WC postcode area saw the sharpest decline, with supply down 30.1 per cent year-on-year.
Average rents in the WC area reached £1,464 in Q3 2026, up 7.3 per cent from £1,365 a year earlier. The EC area averaged £1,289, a 5.2 per cent rise. Outer London rents dipped slightly to £800, while Greater London as a whole averaged £932, up 0.6 per cent.
Landlords adjusting to ban on bidding wars
The figures come as London's private rental market continues to face a prolonged housing crisis, with soaring costs and dwindling supply squeezing tenants. The Renters' Rights Act has introduced protections including a ban on no-fault evictions and rental bidding wars, but concerns have emerged that some landlords are finding new ways to push up asking prices.
Letting agency Hello Neighbour has reported that some landlords are now setting their initial asking rents significantly higher in response to the ban on bidding wars. Rather than allowing competing offers to drive up the final price, landlords are reportedly building those increases into their advertised rents from the outset.
Matt Hutchinson, director at SpareRoom, said: “With average rents now into four figures, to affordably rent an average room in a London flatshare people will need a gross salary of at least £40K. That excludes many, including some essential and service workers, and young people starting their careers. 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.”
