Room rental supply has just entered negative growth in inner London according to flatshare site SpareRoom. When supply falls, rent increases are likely to follow. But data also shows east London postcodes have both the highest supply and the cheapest rents in the capital.
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. But zoom in on inner London postcode areas and it's clearly not the same story everywhere.
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 |
The chart shows east London room rental supply outperforming other areas of the capital over a five-year period:
Matt Hutchinson, director at flatshare site SpareRoom, comments: “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.”