With rents rising Britons across the country could rake in unexpected amounts renting out their spare room.
London is known as the priciest region in the UK, but elsewhere in the country room rents are increasing much quicker than they are in the capital, SpareRoom.co.uk revealed to This is Money.
Excluding London, room rents across the UK have risen by 5.01 per cent in a year, compared to 1.63 per cent in the capital.
Monthly room rents and annual change: Excluding London, room rents have increased by 5.01 per cent in a year, SpareRoom.co.uk exclusively revealed to This is Money
The regions seeing the biggest average increase in room rental prices in the last 12 months are the South East and the South West, the findings suggest.
In the South East, average monthly room rents have risen to around £485 a month, a 6.59 per cent increase on a year earlier.
Across the South West, average monthly room rents have grown to around £431, a 6.62 per cent increase on a year ago.
People looking to rent out a spare room in Northern Ireland could take in around £280 a month from tenants.
While this is low compared to the rest of the UK, room rents in Northern Ireland have increased quickly over the past year, rising 5.26 per cent in a year, SpareRoom said.
In London, people looking to rent out a room can expect to rake in around £747 a month from their tenants.
While the amount of money that can be earned from renting out a room in the capital is hefty, if not bordering on the extortionate, the pace of growth in room rates in the capital in the last year has been relatively modest just 1.63 per cent, SpareRoom said.
The only region in the UK that has seen room rents increase at a slower pace than London in the last 12 months is the West Midlands, where average room rents have only increased by 1.52 per cent to around £400 a month.
Spare space: The regions seeing the biggest average increase in room rental prices in the last 12 months are the South East and the South West, SpareRoom.co.uk told This is Money
Regional variations: Average monthly room rents by region between 2014 to 2016
Outside of central London’s boroughs, Twickenham is the town where would-be landlords can earn the most from renting out a spare room, with monthly room rents around £647, amounting to over £7,500 a year.
Leafy Esher, in Surrey, is the second most expensive town for renting out a room, with landlords currently raking in around £629 a month.
At the other end of the spectrum, people renting out a room in places like Belfast, Rochdale and Bradford won’t see their spare square-footage stretch quite as far.
In Belfast, average monthly room rents are around £278, while in Rochdale and Bradford they are £279 and £307 respectively, the findings suggest.
Across London’s room rental market, in certain areas there are signs of a cool-down in prices. But, in Barnes room rents soared 41 per cent in a year to around £816 a month.
Meanwhile, room rents in West London have fallen by 2.5 per cent over the past year, SpareRoom said.
Surprise fall: oom rents in West London have fallen by 2.5 per cent over the past year
Room rates: Top 10 most and least expensive places to rent a room in the UK
Matt Hutchinson, of SpareRoom, told This is Money: ‘The first quarter of 2016 saw some respite for renters, thanks to an upturn in supply as buy to let investors rushed to complete ahead of the stamp duty increase.
‘But this may only provide temporary relief – the UK’s residential rental market is still groaning under the weight of demand, particularly in London’s satellite towns.
‘Even cities like Manchester and Birmingham, which offer some of the highest levels of supply for renters in the UK, are massively oversubscribed with six tenants competing for every room.
‘With UK rents rising 5% in a year, it’s hardly surprising 65% of SpareRoom users said they were in favour of rent controls. It’s come to something when lower than average rent increases are seen as good news.’
TENANTS FORKING OUT 2.4% MORE ON RENT THAN A YEAR AGO
Rising: The cost of renting a home has increased by 2.4 per cent in the past year, Your Move and Reed Rains said
While renting out a room has the potential to make you a small fortune, renting out an entire property continues to be beneficial for would-be landlords in many parts of the country.
According to findings published today by Your Move and Reeds Rains, annual rents for properties across the UK have increased by 2.4 per cent to around £793 a month in the past year.
The average tenant is now paying an extra £19 a month, with rents reaching all-time highs in the East of England, the West Midlands and the East Midlands, the research suggests.
It added that the average landlord in England and Wales saw total returns of 10.7 per cent in the year to April, taking into account rental income and capital growth.
Adrian Gill, of Your Move and Reeds Rains, said: ‘Anyone looking for a home to rent may now find the better deals of the winter months are over.
‘Landlords are seeing renewed interest and competition between potential tenants, as the spring rental market accelerates.’