London postcodes where rents rose by more than a third last year

According to the data, the cost of renting rooms in parts of London increased by more than a third last year.

Figures from Flatshare portal SpareRoom showed that tenants in postcodes W7 and SW20 paid 34 percent more in the fourth quarter of 2022 than at the end of 2021.

Average rents in Hanwell’s W7 area rose from £631 to £843 last year, while those in Raynes Park-based SW20 rose from £677 to £904.

Eleven London postcodes experienced a rent increase of 30 percent or more (see chart).

London postcodes see fastest growth in average rent per year through Q4 2022

Source: empty room

Tenants in the highly desirable W1 area, which encompasses large swaths of the West End, were typically paying £343 more per month through the end of 2022.

This made the postcode, which covers many streets between Hyde Park and Regent’s Park, the most expensive in London at an average of £1,475 per month.

Westminster’s SW1 neighborhood followed with £1,284 and WC1 including Bloomsbury was third on the list with an average rent of £1,255 in the fourth quarter of last year (see chart).

London postcodes with most expensive average monthly rent in Q4 2022

Source: empty room

A total of 23 London postcodes had four-digit monthly rents through the end of 2022.

Rental costs increased by at least five percent in all 105 London postcodes surveyed by Spareroom. The average monthly bill in the capital increased by more than one-fifth to £935.

The story continues

This increase is well above the 13% increase seen in the UK, where average rents were £660 at the end of last year.

SpareRoom director Matt Hutchinson said the low supply of rental homes combined with widespread inflation to drive rent increases.

“The last 12 months have seen rents hit record highs across the UK and it’s hard to see those rents fall significantly in 2023 unless new supply comes to market in the coming months,” he warned.

“High rents not only make it harder for tenants who need to move now, but also mean that many of them stay in place to avoid paying more rent.”

He added that rising tenancy costs could have a “significant” impact on the UK’s fragile economy.

“Work is the main reason people move, but if a potential salary increase by having to pay more rent is eliminated, a lot of people will stay where they are.”

Dan Wilson Craw, deputy director of tenant organization Generation Rent, said: “Rents are at record highs as the government has not done enough construction to keep up with the demand for living in London, which has now returned to normal after the pandemic.

“It’s a nightmare for anyone who has to move, but it’s also becoming a problem for those who want to stay in place as landlords demand higher rents with the threat of eviction.

“We need the government to freeze rents and suspend faultless evictions during the cost of living crisis and relink local housing allowance to market rents.”

Campaign body London Renters Union reiterated its call for a rent freeze.

A spokesperson said: “Landlords raising rents to £950 a month for a single bedroom only worsens the rent crisis and is driving many people further into poverty.”

“We also need more housing, especially social housing. By controlling rents, we can protect tenants now and ensure that future increases in housing supply contribute to a fairer, stronger housing system that works for all.”

Last week’s census data showed the number of privately chartered households in London surpassed one million after rising 25 percent in a decade.

Data from insurance company HomeLet, meanwhile, showed that the average cost of renting a home in Greater London fell 0.2 percent in December. However, commentators have suggested that this is unlikely to translate into a meaningful reduction in 2023.