London rents fall for two consecutive quarters

London rents fall for two consecutive quarters

London rents have fallen for the second consecutive quarter, driven by sharp reductions in SW14 Mortlake (-9%), W8 Holland Park and NW5 Kentish Town (-7% respectively), analysis from SpareRoom shows.

Despite these reductions, rents in London are still 1% higher than the previous year.

Between Q2 2021 and Q2 2024, rents fell by just under a third (29%) across the UK, from £576 in Q2 2021 to £740 in Q2 2024, as SpareRoom said it was good that the market was finally starting to rebalance.

Matt Hutchinson, director at SpareRoom, said: “As supply has increased over the past few years and demand has fallen from its record peak in 2022, we are starting to see the market slowly rebalance.

“However, while this is a welcome sign, the extent to which rents have increased over the past three years is shocking and there is still a long, long way to go.

“The cost of living and chronic housing shortages must have been on voters’ minds last week.

“The new government is already making it clear that housing is on the agenda from day one, so we hope the result will be a more coherent housing policy, focused on building more homes and also making better use of existing ones.

“Despite average rents in London falling for consecutive quarters, they are still well beyond affordability by any reasonable standard.”

Rents in the UK as a whole rose 5% year-on-year in Q2, remaining at the same level as Q1 2024.

In terms of room rentals, Kingston upon Thames (£898) is the most expensive, followed by Twickenham (£889) and Reigate (£845).

Warrington (15%) has seen the biggest increase in rental prices, followed by Bolton (14%) and Southend on Sea (13%) over the past 12 months.