The cost of renting a one-bedroom property in London is escalating faster than rents for larger homes in half of the city’s boroughs, according to a new study by flexible co-living brand Gravity Co.
This trend is exacerbating the burden on single people and couples without children, caused by the “perfect storm” of rising demand and dwindling supply.
The analysis reveals regional disparities, with smaller properties experiencing greater price hikes due to limited supply.
Prospective tenants are being forced into fierce competition for these properties, resulting in rising rents and stressful house hunting experiences.
In 16 out of 32 London boroughs, those seeking smaller properties are witnessing greater price increases than those hunting for larger residences. Kensington and Chelsea exhibit the most significant gap in rental price growth between smaller and larger homes.
Rent for one-bedroom properties in the borough has risen by 9.7% annually to £1,950, nearly five times faster than the 2% increase for three-bedroom homes.
The urgent need for more rental properties, including purpose-built rental accommodation, is underscored by Gravity Co’s research. Co-living build-to-rent developments can significantly augment supply, providing tenants with a fixed-price choice and eliminating the stress of outbidding others for a home.
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.”
Tessaro emphasised the importance of having sufficient rental properties available in the UK for those not ready or willing to buy a home. He pointed out that build-to-rent developments not only offer a comfortable and safe living space but also help to build communities.
“Our offering provides instant access to a social network for our members, helping them make new friends and build work connections,” Tessaro added.
