Labour's Renters' Rights Act drives London room rents above £1,000 as landlords quit the market

From the Newshound archive · first published 8 October 2026 · last updated 9 October 2026.

SpareRoom data shows the average cost of renting a room in inner London hit £1,002 a month in the third quarter of 2026, after a 7.3% collapse in the number of advertised rooms drove prices back toward their 2023 record high. SpareRoom director Matt Hutchinson blamed the Renters' Rights Act directly, warning that landlords are abandoning the market because compliance costs outweigh returns.

Across the whole of Britain, average room rents have hit a record £769 a month, with supply down 4.7% year on year as flatshare listings collapse nationwide.

The most expensive London postcode is South Kensington and Knightsbridge at £1,682 a month — more than double the cheapest, Manor Park, at £752.

Hutchinson warned the Government 'hasn't acknowledged these problems', calling the outlook for affordable housing improvement 'bleak'.