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Room rentals are at an all-time high, says Spareroom – Mortgage Strategy

Average room rentals have reached record highs across the UK, according to data from flatshare platform SpareRoom.

Spareroom said the rental market is showing new signs of strengthening following the introduction of the first phase of the Tenants’ Rights Act.

Data for the second quarter of 2026 shows that average room rents have reached record levels in six of the UK’s nine regions, while the supply of rooms available to rent has fallen for the first time in three years.

Room rentals fell by 3.2% compared to the same period last year, reversing a long period of growth. Supply had previously increased by 8.7% in Q2 2025, 24.2% in Q2 2024 and 15% in Q2 2023.

The average cost of renting a room in the UK is now £761 per month, up 0.5% year-on-year and almost 7% over the past three years.

The South West recorded the largest annual regional rent increase, with average rents up 1.6%, while East Anglia had the strongest growth over the past three years, with rents up 9.9%.

Greater London was the only region to record a year-on-year decline, with average rents falling by 0.2% to £915 a month.

Of all the UK nations, Northern Ireland saw the strongest year-on-year increase in rents, rising by 3.8% to an average of £580 a month. Over the past three years, rents in Northern Ireland have increased by 12%, the highest rate of any country in the UK.

Scotland recorded an annual increase of 1.1% to £698 a month, while employment in Wales rose by 1% to £594. In England, the average room rent rose by 0.5% to £767.

At city level, Norwich recorded the biggest annual rise in room rents, with prices rising by 5.1% to £619 a month. Exeter followed with an increase of 4.9%, while Liverpool saw rents rise by 4.4% to a record £556 a month.

Coventry also experienced strong growth, with rent rising by 4.1%, while Milton Keynes saw a rise of 1.7% to £686 a month.

London remained the most expensive city in the UK for flatshares, with the average room rent reaching £979 a month. Edinburgh (£834) and Oxford (£814) were the next most expensive markets.

At the other end of the scale, Lincoln was the cheapest city for renters, with room rents averaging £510 a month, despite recording the biggest annual fall of any city at 4%. Swansea (£532) and Sheffield (£533) were also among the cheapest places.

Although Sheffield remained one of the least expensive cities, rents hit a record high that first came in the third quarter of 2025 and were 1.4% higher than last year.

Matt Hutchinson, managing director at SpareRoom, said rising rents were still a major concern despite changes aimed at improving conditions for tenants.

He said: “The Tenants’ Rights Act will improve standards, but it’s part of the job. The next, important thing is to deal with affordability. You can’t solve the housing problem with legislation alone.

“Unless real action is taken to protect and increase the supply of rental properties, tenants will continue to face higher rents, fewer options, and more pressure on what is already a stretched market. Flatsharing is a cheaper way to rent but the data shows it is far from market pressure.”

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