Arthur looks at the changing living situation in Britain’s capital
Since 2007, there has been a decrease of 3% in the amount of one-bed properties available to rent in London. This has seen a large jump in cost for those looking for a one-bed property. Those looking for a one-bed property can now expect to pay around £1133 per month, a 2.9% increase since May 2015. For the average Londoner under 30, that’s 57% of their monthly salary.
Due to the increasing cost of buying houses and increasingly strict mortgage tests, there has been considerable pressure placed on the private rental market. As rental prices have increase, there has been a move by tenants away from one-bed properties. Many young professionals are now choosing to live in house-shares or HMO properties. This means that whilst the percentage of people living in one-bed rents has decreased, the demand for four or five person households has increased.
One-beds are big test for Mayor
These statistics, provided by Countrywide and the ONS, come after a proposed 611-foot high skyscraper planned to be built on the Isle of Dogs was refused planning permission by Tower Hamlets council. It was refused on the basis that it contained too many one-bed units. The skyscraper was planned to have 221 one-bed flats. Former mayor Boris Johnson was a known supporter of the skyscraper and it remains to be seen what position Sadiq Khan will take. This is an excellent opportunity to see how committed the London Mayor is to his election promises. Khan promised to force developers to ensure 50% of all homes built are affordable housing for middle and low income families. His position on one-bed properties will give a good indication of things to come.
For now, it appears that the smart money is in HMO’s and larger properties. But with the recent changes to the laws surrounding second properties, such as the new Stamp Duty rules, it remains to be seen if these will be viable investments for would-be landlords.
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