The cost of renting a one-bedroom property is rising faster than rents for larger homes in 50% of London boroughs, new analysis by the flexible co-living brand Gravity Co has found.
A perfect storm of surging demand from tenants, combined with a shortage of homes to rent as buy-to-let landlords exit the market, drove up average rental prices by 4.9% across the UK in the 12 months to the end of March.
But the national picture masks regional disparities, especially when it comes to the most in-demand smaller properties. In many areas, limited supply is forcing prospective tenants to compete for properties, driving up rents and making flat-hunting stressful as multiple people bid for the same home.
The analysis of the most recent ONS data suggests that people who want to live alone, or in a couple, are seeing even greater price increases than those seeking bigger properties in 16 out of 32 London boroughs. This is likely to have a disproportionate impact on younger people and those without children, who tend to search for one-bedroom properties.
In Kensington and Chelsea, the average cost of renting a one-bed property has risen nearly five times faster than the average rent for a three-bed property. The monthly cost of renting a one-bedroom home in the area has risen by 9.7% on an annual basis to £1,950, while that of a three-bed home has risen by just 2% in comparison.
Gravity Co’s research highlights the urgent need for more homes to rent around the capital, including purpose-built rental accommodation. Co-living build-to-rent developments can significantly boost supply, giving would-be tenants more choice at a fixed price, and sparing them the stress of having to outbid others in order to find a home.
Gravity Co’s apartments also come with the certainty of all-inclusive utility bills, meaning tenants’ energy, water and broadband costs are all covered. Members also have access to events and partner discounts to save them further costs on a day to day basis.
Gravity Co is a co-living and PRS brand focused on community, flexibility, wellbeing and professional growth.
Riccardo Tessaro, Co-Founder & CEO of Gravity Co, said, “In the current frantic rental market, finding a place to live can be incredibly challenging. The perfect storm of rising demand and falling supply isn’t just pushing up average rents — in some areas it’s forcing would-be tenants to outbid rivals just to secure a place to live.
“The shortage of one-bedroom flats in some parts of London is impacting young and single people more than most, making it even harder for them to find a home of their own.
“Not everyone wants to buy a home, or is in a position to, so it is vital that there are adequate rental properties available in the UK.
“Build-to-rent developments, which provide homes for a great number of people on one site, don’t just offer a comfortable and safe place to live — they can help build communities too.
“Our offering provides instant access to a social network for our members, helping them make new friends and build work connections. Members also pay just one simple monthly amount, which includes all their utility bills — which makes budgeting easier during the cost-of-living crisis.”
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