Rents in London remained close to their lowest since 2014 in the third quarter of the year, new figures have shown.
SpareRoom's rental index showed average rents in the capital fell to £725 a month in the third quarter of the year, down two per cent from £741 during the same period last year.
In the second quarter of the year average rents in the capital fell to £722 a month, a three-year low.
Only central London saw a rise, with rents edging up three per cent in the eastern part of the centre, and six per cent in the western part.
However, the capital remained the UK's most expensive city to rent a room in, with average prices in the rest of the country at £456 per month, up three per cent on last year.
And it looks like Londoners are increasingly looking out of the capital for affordable homes: the figures suggested 54 per cent more people are looking for rooms outside London, with a 1,063 per cent increase in Londoners looking for rooms in Glasgow. Manchester, meanwhile, experienced a 223 per cent increase.
Last month City A.M. reported an uptick in the number of millennials shunning the capital, with graduate employers including Accenture, EY, Deloitte and PwC reporting an increasing number of grads opting to live in regional cities.
Matt Hutchinson, director at SpareRoom, pointed out that while the fall in rents looks like good news for Londoners, it may be too little, too late.
"Many renters are hitting their affordability ceiling so what we’re seeing is a shift within London towards traditionally cheaper areas in the South East of the city. At the same time, the number of people fleeing London in search of cheaper housing is at a five year high.
“As new job opportunities open up throughout the UK, and investment pours in to tech and business hubs in cities like Manchester and Glasgow, it’s not a huge surprise that Londoners are considering a move outside of the capital.”