The rental market is beginning to show signs of stabilising as rental increases are slowing.
Rents rose 4% on average in the UK in Q3, which is the smallest year-on-year increase of 2024. While average rents are still rising, this shows signs that the market is slowing down, according to flatshare website, SpareRoom.
The regions that have seen the biggest increases in average rent prices are Northern Ireland (+8%), East Anglia (+6%) and the North West (+6%).
The cities and towns that saw the biggest year-on-year increase are Southend-on-Sea (+11%) and Dundee (+10%), while Warrington (-2%) was the only area in the UK to see a decrease in average rent prices.
London rents have decreased for the third consecutive quarter, however the ratio of people looking for rooms in the capital is 3.67, down from 5.72. This is in comparison with the UK wide ratio of 3.99, down from 6.19. Outside of London, the most expensive city to rent in is Edinburgh, with an average room costing £920 per month.
Overall, looking at the data year-on-year, the news is looking more positive for renters as the market begins to show signs of rebalancing.
| Region | Average monthly room rent Q3 2024 | Average monthly room rent Q3 2023 | Annual change Q3 2024 vs Q3 2023 |
| East Anglia | £671 | £631 | 6% |
| East Midlands | £565 | £551 | 3% |
| North East | £550 | £528 | 4% |
| North West | £604 | £567 | 6% |
| Northern Ireland | £573 | £529 | 8% |
| Scotland | £716 | £685 | 4% |
| South East | £741 | £711 | 4% |
| South West | £664 | £632 | 5% |
| Wales | £572 | £556 | 3% |
| West Midlands | £560 | £537 | 4% |
| Yorkshire and Humberside | £556 | £542 | 3% |
| London | £995 | £989 | 1% |
| UK | £745 | £720 | 4% |
| UK (excl London) | £660 | £630 | 5% |
UK’s most expensive towns and cities (excluding London)
| Town/City | Average monthly room rent Q3 2024 |
| Edinburgh | £920 |
| Twickenham | £912 |
| Kingston upon Thames | £911 |
| Barnet | £846 |
| Epsom | £833 |
| Croydon | £831 |
| Bromley | £829 |
| Harrow | £824 |
| Oxford | £818 |
| Cambridge | £812 |
UK’s cheapest towns and cities
| Town/City | Average monthly room rent Q3 2024 |
| Bootle | £453 |
| Huddersfield | £458 |
| Scunthorpe | £473 |
| Bradford | £475 |
| Middlesbrough | £477 |
| Blackburn | £478 |
| Burnley | £489 |
| Hull | £493 |
| Grimsby | £493 |
| South Shields | £495 |
Matt Hutchinson, director at SpareRoom, comments: “Although rents are still creeping up overall, we’re starting to see signs that things are slowing down, particularly when it comes to the number of people chasing every room on the market. That’s positive news, but there’s a long, long way to go before rents will feel genuinely affordable”.