The supply of rooms to rent in inner London has fallen for the first time in three years, raising the prospect of further rental increases, according to flatshare website SpareRoom.

During the second quarter of 2026, room rental supply in inner London fell by 5% year-on-year, ending a three-year period of growth. Across Greater London, supply declined by 3.4%, while outer London recorded modest growth of 0.9%.

The picture varied significantly across the capital. East London recorded the strongest performance, with room supply remaining broadly unchanged over the year (-0.1%), while supply fell by 9.8% in both north-west and south-west London. North London saw a 6% decline, with west London down 4.1% and south-east London falling 1.9%.

Matt Hutchinson, Director at SpareRoom, said: "It's no coincidence the area of London with the most rooms available also has the cheapest rent. Where supply is most squeezed, rents will rise faster.

"The big problem, of course, is that supply is now falling everywhere, it's just not falling as fast in east London."

East London also offered the greatest choice for renters and some of the lowest rents. Average monthly room rents stood at £933, compared with £937 in north London, £961 in south-east London, £977 in north-west London, £1,039 in south-west London and £1,043 in west London, the most expensive area of the capital. East London currently has more than twice as many rooms available to rent as north London.

Across the capital, the average monthly room rent reached £979 in inner London, £794 in outer London and £915 across Greater London.