Rising London rents drive tenants into shared accommodation

According to the latest ONS figures private rental prices paid by tenants in London grew by 0.4 percent in 2017, stretching the budget of the average London house hunter.

Further insights from the LSL Rental Index found that London rents were the highest in the country, with an average monthly asking price standing at a staggering £1,280. With the average salary ranging between £34,894 and £37,500, London renters can expect to spend nearly half of their income on rent. This excludes the additional expenses that renters face such as bills and council tax, making private renting a costly expense for the average Londoner.

Increasing rents are leading to tenants looking for alternative accommodation options such as shared housing. In sharp contrast to the typical cost of London accommodation, the average rental asking price for a room in a shared house is £782 – a marked saving. People who opt to live in shared housing can save nearly £500 a month, an annual reduction of just under £6,000 when compared to the average property.

The shared accommodation rental asking price comes from Spotahome, a unique, safe and secure online platform that enables renters to view and book accommodation without visiting the property.

Independent ‘Homecheckers’ create videos and photographs of each home ensuring that tenants have an accurate representation  of the property, and once a booking has been confirmed the first month’s rent isn’t transferred to the landlord until 48 hours after the move in date, providing the tenant with an additional safety net.

Adriana Carnerero, a Spotahome user stated:

“When I moved to London, I initially wanted my own apartment. However, there was no way that I could afford a studio or a one-bedroom apartment on my salary. A friend recommended that I try living in a shared apartment. At first I was concerned about living with strangers, but I’m actually living with some incredible people.”

Alejandro Artacho, CEO of Spotahome, comments:

“The rising cost of accommodation is often a major point of contention for many Londoners, and for people choosing to move to the city from abroad, the cost of rent can be a real shock. Across all of the European cities that we operate in London, has some of the highest rental asking prices.”

“Continually rising rents are pushing professionals to their breaking point. As a result we are seeing growing numbers of people looking for cheaper alternatives, with a particular desire for shared accommodation.”