Renting a room in London now costs, on average, £995 per month, a 37% increase over the past five years, according to Q3 2025 data from flatshare platform SpareRoom.
The capital’s average rent first passed the £900 mark in late 2022, peaked at £1,015 per month in Q4 2023, and is now approaching £1,000 once again. North London experienced the highest year-on-year rent increases in Q3 2025, rising by 2.1%.
For renters on tighter budgets, searching in South East London may be preferable, where the average rent currently stands at £951 per month. Some areas still offer rents below £800 per month, including E12 (Manor Park), E6 (East Ham), N9 (Lower Edmonton), and E4 (Chingford). Notably, E12 has seen the largest year-on-year fall in average rents, down 11%.
Despite these options, four South East postcodes – SE3 (Blackheath), SE24 (Herne Hill), SE4 (Brockley), and SE9 (Eltham) – recorded some of the highest year-on-year rent rises in London during Q3.
Rising rents in the capital are also pushing demand for rooms in commuter towns and suburban areas. St Albans, a 20-minute commute to St Pancras, saw rents rise 10% year on year, while Brentwood on the Elizabeth line recorded a 5% increase.
The trend highlights the growing challenge of affordable housing in London, with rising rents creating pressure for young professionals, students, and lower-income workers seeking shared accommodation.
Matt Hutchinson, director at SpareRoom, comments, “Because of chronic undersupply in the London rental market, rents are stubbornly high and meeting affordability criteria – not spending more than 30% of your salary on rent – is rarely possible. When even the cheapest room in London is above £700 per month, hardworking people the capital relies on to function have little choice but to leave.”
