"For people to be able to rent in their first-choice areas, and maintain flexibility in the workforce, we need to see rents fall significantly"
- Matt Hutchinson - SpareRoom
Room rents across the UK showed signs of stabilising in Q2, with the national average rising just 0.9% year-over-year to £748 per month. In London, average room rents stood at £980 per month, a 0.4% annual decrease.
However, some cities continue to see notable rent increases. Among the UK’s 50 largest towns and cities, Wolverhampton recorded the biggest rise at 6.1%, followed by Southend-on-Sea at 5.8% and York at 5.5%. In contrast, Bradford saw the sharpest fall, with average room rents dropping 3.9%, while Manchester declined by 3.7% and Stoke-on-Trent by 3.3%.
Data from SpareRoom’s latest Rental Index shows that three towns in the West Midlands saw the highest year-on-year increases in the broader list of the UK’s top 250 towns and cities. Rents in Cannock climbed 20.7%, followed by Stourbridge at 17.2% and Kidderminster at 15.7%. Demand remains especially high in Kidderminster, with 8.8 people competing for each available room.
By contrast, the biggest rent drops among the top 250 towns were found in Great Yarmouth (-19.1%), Kirkcaldy (-18.3%), and Halesowen (-11.4%).
Regionally, Wales recorded the highest rent growth at 2.1%, closely followed by South West England at 2%. Scotland and North West England both saw modest declines, falling 0.9% and 0.6% respectively.
Despite a slight year-on-year decrease, London remains the most expensive region for renters. Rents peaked at £1,014 in Q4 2023 before falling to the current average of £980. This still represents a 26% increase over the past five years.
Spending on rent continues to weigh heavily on renters. In 2021, 24% of UK renters spent more than half of their take-home pay on rent. That figure has now risen to 26% in 2025, with 75% of renters allocating more than 30% of their income to housing costs.
In terms of the most expensive areas to rent outside London, Twickenham remains top at £951 per month, with particularly high demand—8.3 renters per available room. Edinburgh and Redhill re-entered the top 10 most expensive towns this quarter, replacing Epsom and St Albans.
“Rents are stabilising, but squeezed renters aren’t feeling anything close to relief,” said Matt Hutchinson, director at SpareRoom. “For people to be able to rent in their first-choice areas, and maintain flexibility in the workforce, we need to see rents fall significantly. But, as long as high demand and limited supply are the status quo, we won’t see rents drop to levels that people would find genuinely affordable.”
