Room rental supply has just entered negative growth in inner London according to flatshare site SpareRoom.
In the second quarter of 2026, as the Renters Rights Act came into effect, flatshare supply fell in inner London (-5%), ending a three-year growth run.
Although it did not see the growth of previous years, east London rental supply stayed more or less the same in the year to Q2 2026, as supply in north-west and south-west London fell by almost 10% year on year.
East and north London are currently the most affordable areas in the capital, with average rents of £933 and £937 per month respectively.
But in Q2, east London had more than twice the number of rooms available to rent than north London.
The priciest postcode area is west London (£1,043), which currently also has the lowest supply in the capital.
The table below shows year-on-year changes in room rental supply:
| Quarter | Inner London | Outer London | Greater London (inner + outer) |
| Q2 2026 | -5.0% | 0.9% | -3.4% |
| Q2 2025 | 7.8% | 15.5% | 9.8% |
| Q2 2024 | 27.2% | 41.5% | 30.6% |
| Q2 2023 | 16.6% | 19.2% | 17.2% |
| Ave monthly room rent Q2 2026 | £979 | £794 | £915 |
The table below shows year-on-year changes in room rental supply in inner London postcode areas:
| Quarter | E | N | NW | SE | SW | W |
| Q2 2026 | -0.1% | -6.0% | -9.8% | -1.9% | -9.8% | -4.1% |
| Q2 2025 | 7.8% | 9.9% | 15.4% | 5.3% | 5.7% | 8.1% |
| Q2 2024 | 34.1% | 18.1% | 30.6% | 29.9% | 26.4% | 20.7% |
| Q2 2023 | 21.3% | 14.3% | 14.9% | 18.7% | 12.6% | 7.6% |
| Ave monthly room rent Q2 2026 | £933 | £937 | £977 | £961 | £1,039 | £1,043 |
Site director Matt Hutchison says: “It’s no coincidence the area of London with the most rooms available also has the cheapest rent. Where supply is most squeezed, rents will rise faster. It’s a good reminder what needs to happen if renters are to see any meaningful decreases in housing costs.
“The big problem, of course, is that supply is now falling everywhere, it’s just not falling as fast in east London.
“The new Prime Minister and his cabinet will have their work cut out to deliver cost of living savings in the absence of enough rental supply.”
