"Even for those who are happy to share with housemates, it may be just too expensive to live in the capital today after years of rent rises. And it's not only rent, it's the higher cost of living to contend with, too."
- Matt Hutchinson - SpareRoom
The number of people seeking rooms to rent in London has fallen by almost a fifth since 2020, as flatsharers increasingly look to well-connected locations across Hertfordshire, Essex and Surrey, according to data from flatshare site SpareRoom.
Comparing January 2026 with January 2020, demand for rooms in London dropped 18% while searches across the rest of the UK rose 11%.
An analysis of more than 241 million area search terms entered on SpareRoom in 2025 shows searches for 'London' fell 14%, with searches for individual London postcode areas falling by between a fifth and a third.
Searches for 'Greater London' bucked that trend, rising 38%, pointing to growing interest in outer parts of the capital where rents are more affordable.
Inner London room rents now average £978 per month, up 27% from £773 in Q1 2020. That sustained increase appears to be reshaping where flatsharers are willing to live, with the rental market in commuter locations absorbing much of the displaced demand.
The highest increase in renter interest anywhere in the country is Waltham Abbey, an Essex market town around an hour from central London, where average room rents stand at £784 per month. Interest there has risen 113% year on year. Outer London locations are also drawing attention, with average rents of around £811 per month. Hillingdon has seen searches rise 62%, Sudbury 60%, Enfield 46%, Ruislip 40% and Heston 39%.
Hertfordshire is emerging as a strong alternative for renters leaving the capital. Baldock and Broxbourne have both seen interest rise by around 60%, with both towns connected to London by fast trains. Elstree, Borehamwood and Radlett, all served by Thameslink, have recorded increases of between 31% and 36%. Kings Langley and central St Albans, which has some of the strongest commuter links north of London, are also seeing growing interest, up 28% and 26% respectively.
Essex continues to attract attention beyond Waltham Abbey. Buckhurst Hill is up 47%, Southend-on-Sea 42%, South Ockendon 36%, Chigwell and Rayleigh both 30%, and Gidea Park 29%. Both Buckhurst Hill and Chigwell sit on the Central line, while Gidea Park is served by the Elizabeth line.
Surrey rounds out the picture, with Walton-on-Thames, just 25 minutes from Waterloo, up 50%. Reigate has risen 47%, Banstead 45%, Virginia Water 43%, and Guildford 33% and 27% across its two main postcode areas.
"Area searches give us a sense of where the market is headed and, in this case, it's out of inner London and into commuter territory," said Matt Hutchinson, director of SpareRoom.
"Even for those who are happy to share with housemates, it may be just too expensive to live in the capital today after years of rent rises. And it's not only rent, it's the higher cost of living to contend with too. Remote working offers the possibility of moving further out without the expense and hassle of a daily commute.
"You also have to consider the demographics of flatsharers today. Younger people are increasingly priced out of the rental market, and people are flatsharing to later in life. The stereotype of the young professional housemates living it up in the city is becoming less recognisable. Priorities are changing."
