The November 2013 edition of SpareRoom’s Room Rental Index, giving average room rents across the UK, is now available to download.
Room rents are looking to hold up better than rents for whole houses and flats, with SpareRoom’s index seeing a 4% increase in room rents in the last 12 months.
The big increases in room rents though aren’t in London, but about as far north as you can get. Scotland blasted these results with Aberdeen room rents growing by 13% year on year and “significant rises have been recorded in Inverness, Paisley, Edinburgh and Kirkcaldy.” And even the tough market of Northern Ireland and Belfast has “seen big rises, up over 7% just this last quarter, and 9% since last year.”
In contrast, areas such as City of London saw 5% falls since 2012, suggesting rents can rise, but there is a limit to how much rents can grow which is typically based on wage rises (or falls).
Where is the cheapest and most expensive place to rent a room?
The cheapest place to rent per week is Llandridod Wells in Wales which costs just £63 per week, with most expensive being £213 per week in West London. Most rents are around £70 to £80 per week, which compares well with the average rent of a property of £500-£600 per month versus £325 per month, saving tenants around £225 per month, or just under £3,000 per year.
Rent a room and raise a deposit to buy in just two years!
Interestingly, with average first time buyer property purchases at around £135,000, a 5% deposit under the current Help to Buy Scheme means, the savings made renting a room could generate the deposit required of under £7,000 in just two years. It’s always worth thinking through if you are looking at buying in London and need help paying the monthly mortgage, an average of £125 per week, that would help to generate an extra £6,500 per year and with the first £4,250 tax free, a sizeable help towards buying your first home.
Don’t forget, renting a room may well mean you can save even more as most bills are included so you don’t have extra bills to pay such as Council Tax or heating which can substantially add up.
If you are renting:-
If you are a landlord and renting out rooms:-
Read our Renting aRoom checklist from SpareRoom to help guide you through the process and make sure you are abiding by the law!
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