How will renters fare in 2025?

Room Renters, congrats on making it through another year! We are aware that it has not been easy due to the growing expense of living, the great demand for rooms, and the rising rents. However, is the new year looking promising? (We believe so!) This is an analysis of the events that transpired at the end of 2024 and their potential implications for 2025.

In the UK, rising rents are slowing down.

The average room rent in the UK went up from £738 to £744 in the last quarter of 2024, a mere 1% increase from the same period the previous year. Even though an increase might not appear encouraging, it is reassuring to know that the rate of rent increases is slowing down (in contrast to the sharp increases we saw following the pandemic in 2021). No area in the UK has experienced growth of more than 5%.

The cheapest towns to rent in right now are Bradford (£473), Barnsley (£465), and Bootle (£447).

The most costly towns outside of London for single room rentals are Epsom (£855), Kingston-upon-Thames (£920), and Twickenham (£928).

The complete list of average rentals in UK cities and towns can be seen HERE.

Rent in London dropped

Renters in London, take a vacation—for the first time since 2021, rents dropped 2% from £1,015 to £993 in Q4 2024 (compared to the previous year). During the four quarters of last year, rents steadily decreased, with some postcodes experiencing substantial declines: SE21 (Dulwich), -10% SW3 (Chelsea), E8 (Dalston), -9% SW1 (Westminster/Belgravia/Pimlico), -13%

This does not imply that double room renting in London is inexpensive, but if thisLondoners should feel hopeful if this pattern continues into the new year.

For 2025, what does this mean?

There should be some hope for the future as average rents in the capital are declining and growth is moderating nationwide. But before we can say that rentals are truly inexpensive, a lot more work needs to be done. This market cooling is expected to give some reassurance that the market is steadily getting better.