LIFESTYLE – New research reveals significant London rent drops during pandemic
SPAREROOM REVEALS SIGNIFICANT LONDON RENT DROPS DURING PANDEMIC
- London room rents have fallen by 7% year on year
- Rents in West Central (-16%), East Central (-15%) and the North West of London (-11%) have taken the biggest knock during this uncertain time
- East London is the cheapest region to rent in the capital, with average rent prices of £682
- The cost of renting a room in W10 (North Kensington) has now become a possibility for some, with rents falling by 23%
- The number of rooms available to rent in Zone 1 has dropped by a third (-33%) with a 12% decrease in rent
- With rents and supply down across the capital, perhaps we’re seeing a short-term affordability window open up for tenants
New research by flatsharing site SpareRoom has revealed London room rents have fallen by 7% across the capital, compared to this time last year,1 as coronavirus ripples through the housing market.
Rents in West Central (-16%), East Central (-15%) and North West London (-11%) have seen the biggest falls during lockdown, decreasing from £1,091, £979 and £805 to £913, £834 and £717 respectively year-on-year (YOY). East London is the cheapest region to rent in the capital, with average rent prices of £682.
Taking a closer look at the capital’s postcodes, W10 (North Kensington) has seen a dramatic decrease in rent, dropping by 23% from £991 to £763, closely followed by WC1 (-19%) and SW8 postcodes (-18%). SW1 (Westminster / Belgravia / Pimlico) and WC1 (Bloomsbury / High Holborn), once unaffordable to many, might now attract new tenants, with rents down YOY from four to three figures (SW1 – £1,105 to £927 and WC1 £1,082 to £878) per month.
The areas in London that have seen the biggest drop in monthly room rents, comparing May 2020 with May 2019, are revealed below:
- W10 (North Kensington) -23% drop from £991 to £763
- WC1 (Bloomsbury/High Holborn) -19% drop from £1,082 to £878
- SW8 (South Lambeth) -18% drop from £921 to £755
- EC1 (Aldersgate / Finsbury) -16% drop from £972 to £812
- SW1 (Westminster/ Belgravia/ Pimlico) -16% drop from £1,105 to £927
- N1 (Angel / Islington/ Canonbury) -15% drop from £892 to £754
- W14 (West Kensington) -15% drop from £963 to £822
- W8 (Holland Park) -14% drop from £1,119 to £962
- NW8 (St John’s Wood) -13% drop from £907 to £788
- NW1 (Camden) -13% drop from £957 to £832
The data also revealed a decrease in the number of rooms available across London zones 1-6 2. Zone 1 has seen the biggest change in the supply of rooms and rent, with the number of rooms available dropping by 33% and rent decreasing by 12% compared to 2019.
Average monthly room rents & supply by London travel zone, comparing May 2020 with May 2019:
|London travel zone||Average monthly room rent – May 2020||Average monthly room rent – May 2019||Change in room rent (%) – May 2020 vs May 2019||Change in number of rooms advertised (%) – May 2020 vs May 2019|
Matt Hutchinson, SpareRoom Director comments, “Coronavirus is having a dramatic impact on all areas of life, including London rents. With rents and supply falling, we’re starting to see the entire city becoming more affordable, which could spur a flurry of movement as people seek out cheaper rents than they currently have.”