The cost of renting a room in London plunged by 7 per cent year-on-year in the third quarter, while the rest of the UK saw annual growth of 2 per cent, according to SpareRoom.

Room rents in London tumbled from an average of £780 per month in Q3 2019 to £725 for the three months to September this year, marking the second consecutive quarter with a significant fall.

Excluding the capital, room rents across the rest of the UK rose from £481 to £492.

London dragged down the overall UK rental growth to 0 per cent.

Scotland was the only other place to see falling rents with a drop of 2 per cent year on year from £490 to £481.

Northern Ireland saw the most substantial increase in rents compared to any region or country in the UK, with a year on year rise of 5 per cent from £352 to £371, but it remained the cheapest place to rent.

Out of the 50 largest towns and cities in the UK, Blackpool saw the biggest increase in rents, which were up by 7 per cent followed by Nottingham and Leeds which both saw jumps of 6 per cent.

SpareRoom director Matt Hutchinson, SpareRoom Director comments: “Once again, London dominates the headlines in terms of falling rents, and it’s generally the most expensive neighbourhoods that are worst affected.

“With so many young renters leaving the capital, either to find cheaper rents, to move with family, or to leave the UK altogether, it’s hard to know when, or even if, London will regain the appeal it had before the pandemic.

“What we’re seeing might just be a temporary shift in the rental market, or it may be the start of the UK’s rental map being redrawn permanently. 

“Even if young renters do return to the capital in their previous numbers, affordability will be their absolute top priority, in a city that already had an affordability crisis coming into this.”