"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"
- Matt Hutchinson - SpareRoom
Average rental prices in February 2024 fell from £1,024 to £1,009 for the first time since July 2023 which could be explained by supply and demand levels stabilising as more rooms become available on the market and fewer potential renters looking for a place to live in Greater London.
At the height of the rental crisis, 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.
Average rental figures going back to July 2023:
2023-07 £995
2023-08 £1,013
2023-09 £1,027
2023-10 £1,030
2023-11 £1,026
2023-12 £1,019
2024-01 £1,024
2024-02 £1,009
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.”
