London tenants see 42% increase in rent for every additional room

New research by online lettings platform Urban.co.uk has looked at the cost of climbing the London rental ladder from a studio flat to a four-bed property.

With the cost of homeownership out of reach for many, especially for those living in the capital, residents are left with little choice but to seel out larger properties, creating a financial hurdle all on its own.

Urban's research revealed that across London, the average jump to increase your rental potential and upgrade your property size is 42% for each room added.

From a studio to a one-bedroom and a one-bedroom to a two-bedroom requires a 35% and 37% increase, respectively, with the largest jump being that from a two-bed to a three-bed where the weekly rent leaps from £553 to £906 – an increase of 64%.

All in all, taking the step from a three-bed to a four-bed requires a further 46% increase in weekly rent, meaning the difference between a studio flat and a four-bed property is a staggering 296% increase.

In some areas of London, climbing the rental ladder is far more difficult than elsewhere.

The largest average leap across the capital is Fitzrovia, where each additional room requires an average increase in rent of 183%, with Oxford Circus just behind with an average increase of 182%.

Adam Male, director of lettings at Urban.co.uk, said, "A lack of affordable housing is not only inflating the cost of homeownership in the capital, it's also pushing rental prices ever higher as consistent and increasing levels of demand exceed the supply of homes available."

"With an average increase of 42% per room, it is not as easy as simply making the move as this additional cost has to be considered and compiled before doing so. When you couple this with extortionate fees charged by high-street letting agents, it's no wonder many are forsaking the capital for more affordable rental options in the surrounding areas," Male added.