Renters are increasingly looking further away from major city centres, new research suggests.
For those looking in London, areas that have seen a sharp rise in popularity over the last three years are now typically between seven and 11 miles from the center of the capital.
This means a rise in popularity in areas such as Abbey Wood, Forest Gate and Crystal Palace, where tenants can rent for much less than in central London.
Pictured: The ancient remains of Lesnes Abbey, the monastery built in the 12th century in London’s Abbey Wood, an area that has seen a rise in popularity with tenants.
SpareRoom conducted research of 1.5 million searches on its website between 2021 and 2023. The website is popular with those looking for rooms in shared houses, but also includes entire properties for rent.
He suggested that the opening of the London Underground’s Elizabeth line in May 2022 has played a major role in the new rental trend called “outside is in”.
The Elizabeth line serves many of the areas highlighted in the investigation, including Abbey Wood and Forest Gate.
| The biggest | Biggest falls |
|---|---|
| 1. Abbey Wood (+41 from 99 to 58) | 1. Canning Town (-25 from 61 to 86) |
| 2. Forest Gate (+24 from 86 to 62) | 2. King’s Cross (-23 from 46 to 69) |
| 3. Crystal Palace (+23 from 90 to 67) | 3. Holborn (-22 from 85 to 107) |
| 4. Plaistow (+22 from 95 to 73) | 4. Canada Water (-22 from 53 to 75) |
| 5. Tottenham (+20 from 75 to 55) | 5. Camden Town (-19 from 78 to 97) |
| 6. Woolwich (+19 from 54 to 35) | 6. Kensington (-18 from 70 to 88) |
| 7. Colindale (+18 from 64 to 46) | 7. Liverpool Street (-17 from 88 to 105) |
| 8. Ealing Broadway (+17 from 66 to 49) | 8. Clapham Common (-15 from 76 to 91) |
| 9. Leytonstone (+15 from 67 to 52) | 9. London Bridge (-15 from 55 to 70) |
| 10. Catford (+14 from 97 to 83) | 10. Calle Vieja (-14 from 92 to 106) |
| Source: Spare Room |
Good transport links – the Elizabeth line serves many of the areas highlighted in the research, including Abbey Wood and Forest Gate.
In the most searched for London rental areas last year compared to 2022, Abbey Wood topped the ranking, rising 41 places, from 99 to 58.
They are followed by Forest Gate, which rose 24 places, from 86 to 61, and Crystal Palace, which rose 23 places, from 90 to 67.
SpareRoom said searches for rental homes in Abbey Wood have more than tripled to 210 per cent, while property searches in Forest Gate have increased by 157 per cent.
Pictured: Aerial view of South London’s Crystal Palace, an area increasingly popular with renters.
By contrast, demand for many areas within a three-mile radius of central London is declining rapidly.
Search numbers have fallen by a massive 45 per cent in the past year for Camden Town, which is more central and was previously a hotspot.
It has dropped 19 places on the list of popular rental locations in London, from 78th to 97th.
And although Clapham remains the most searched area, the total number of searches has decreased by 33 per cent year on year.
Islington, Canary Wharf and Battersea remain in the top ten most popular venues, but have all fallen down the rankings and Fulham have dropped out of the top 10 altogether.
At the same time, Wembley has broken into the top ten, rising six places from 11th to 5th year on year.
Hackney, Stratford, Ealing and Greenwich are another top ten areas that have seen a rise in popularity.
Pictured: Wooden sculpture of the guardian and Forest Lane park and pond in Forest Gate, an area that is more popular with renters.
SpareRoom said property searches in Southall more than tripled between 2021 and 2023, increasing by 210 per cent. And searches in Ilford more than doubled, reaching 128 per cent.
Towns and cities outside London are also gaining popularity due to the better access provided by the Elizabeth Line.
Other Elizabeth Line access points include Slough, up 87 per cent, Romford, up 77 per cent, Maidenhead up 69 per cent and Reading up 51 per cent.
Beyond the capital, renters are also looking for cheaper neighboring areas outside Leeds, Birmingham and Manchester.
Searches have increased by 88 per cent, 62 per cent and 56 per cent year on year for rental properties in Stockport, Warrington and Bolton respectively.
Matt Hutchinson, of SpareRoom, said: “Our search data has highlighted the changing priorities of renters both in London and across the UK, with proximity to major city centers becoming less of a factor.” important when searching for a room.
“Renters are increasingly looking further afield to make their home, and within London, places like Abbey Wood and Crystal Palace are real hotspots at the moment, with plenty of green space and easy access to the city.”
Average Room Rentals: This shows the typical monthly cost of a room in promising locations.
SpareRoom revealed monthly rents, including bills, for London’s top ten rental hotspots, as well as the top 10 most searched areas.
At the top of the rankings, Abbey Wood recorded average monthly room rent, including bills, reaching £796.
This compares to £1,072 a month including bills for a room in the more central area of Clapham.
One housing expert described renters as having “the worst of all worlds right now.”
Tenants seem to have the worst of all worlds right now.
North London estate agent Jeremy Leaf explained: ‘We are not surprised by the results as they follow a similar pattern to the sales market.
‘Renters, like buyers before them, in their search for better value for money are fleeing urban centers for the suburbs and beyond.
‘This is also reflected in the more hybrid working patterns we are seeing now.
‘Tenants appear to be experiencing the worst of all worlds right now: landlords are selling and not being replaced quickly enough in response to higher borrowing and construction costs, as well as additional regulation.
“The resulting shortage of supply is driving up rents and increasing competition for the relatively few accommodations available.”
However, he added: “There may be a small ray of light on the horizon, as we have recently seen on the ground a modest increase in stock and less intense demand, which is helping to keep rents at control levels. ‘
Most Searched Areas: Shows the cost of renting a room in the most searched locations.
It comes amid separate Cornerstone Tax research which suggested two in five renters fear they will be stuck renting for the rest of their lives.
Rising rent prices mean many tenants have little money left at the end of the month to save a deposit to get on the property ladder.
It means they are thinking about renting a property for their entire life rather than building up some equity in a home of their own.
The survey of 2,081 people included up to 500 homeowners and up to 731 renters and was conducted by Cornerstone Tax in February of this year.
It found that 42 percent of renters fear they will be stuck renting for the rest of their lives.
