A tsunami of build-to-rent and co-living spaces are due to arrive in the UK´s capital city over the next decade to satisfy the increasing demand of renters.
Unparalleled house price growth in London has been evident since the nineties, leaving the young adults of today struggling to get a foot on the property ladder; mortgages and deposits are harder to come by in today´s climate, making rentals the more appealing and achievable way to pay for a home.
According to research by real estate company, CBRE, private renters now make up 30 per cent of all households in London, equal to approximately 2.7 million tenants.
Jennet Siebrits, the head of residential research at CBRE, said: “Over the next decade the number of renters is expected to increase by 122 per cent with the highest growth forecast in Tower Hamlets.”
The concept of an 85-acre development in the land surrounding Wembley Stadium has been proposed, creating the capital´s first and largest build-to-rent project. The move is being developed for the sole purpose of renting out apartments.
Covering 8.8 million square feet, the mixed-use scheme also signified the start of attempts by officials to cultivate communities of tenants.
The latest Zoopla report suggests that the typical tenant in the UK spends nearly a third of their earnings on rent (31.8%). Also, nearly three-quarters of 16 to 24-year-olds and almost half of 25 to 34-year-olds rent from a private landlord, according to the government’s Family Resources Survey.
The sector is concentrated in London, with about a third of rental properties in the UK found in the city. This is also where the typical rent per month is the most expensive.