Shack up or ship out – why London’s rental market is no place for singles
London’s notoriously cut-throat rental market has long lured couples into cohabitation in desperate efforts to save costs as opposed to it being the next natural step in the relationship.
However, over the past 12 months a cocktail of shrinking supply and rising rents has made trying to find a home or even a room in the capital nothing short of a nightmare – and for those without a plus one it can make matters even worse.
Data by Zoopla shows that so far this year an average of 16,900 one bed apartments have come on the market to rent each month. That’s compared to 38,700 in 2017.
Being single in London is hard enough, from trawling through Tinder and dodging certain tube stops to avoid an awkward interaction with an ex.
But now it appears that lonely hearts are also battling it out with couples to secure one of the limited single-bed apartments currently available in the capital.
Executive director of Zoopla, Richard Donnell, says the scarcity of one beds is due to low investment and some homes being moved into short-term or holiday lets.
“For the last five to six years, it’s been tough,” Donnell told City PM “The problem in the rental market is we’ve had low levels of new investment by private landlords.
“Zoopla agents typically had 15 to 16 properties before the pandemic but now they are down to seven to eight [per month]”.
In the last six years the only time supply increased was during the pandemic, when most Londoners escaped the capital in search of fresh air and more space.
But as pandemic restrictions began to ease and the City started to reopen, supply fell sharply – dropping from 38,400 in 2021 to 18,300 just one year later.
“I had a friend of mine, an agent, say this is the first time in his 30-year career where he had nothing to rent,” Donnell said. “There’s a compelling need to move in with friends or a partner.”
Wage stagnation coupled with rising mortgage rates has made buying a home in London out of the question for many – with the average household now needing £100,000 to get on the housing ladder.
“A large portion of the properties we let are one to two beds in London. This year, we have advertised over 300 one to two bed properties, which each receive an average of 90 enquiries per property.
“So, it’s incredibly competitive out there to find the right home,” Richard Jenkins, chief executive and co-founder of estate agent Hello Neighbour, told City PM
Jenkins said the average rental price of a one to two bed property at Hello Neighbour is £1,946 per month, meaning a single tenant would need to earn £58,000 (30 times the monthly rent) to pass referencing and allow landlords to obtain rent guarantee insurance.
“The average income in London is around £42,000. This means there’s a compelling need to move in with friends or a partner,” he explained.
Rental market woes
So, what next? Partner or no partner, the general mood amongst London renters is at an all time low.
As landlords still deal with potential increases in mortgage payments, a cool down in rental prices and increase in supply seem unlikely this year.
A slither of hope may be found in the new Renters Reform Bill, introduced last week and designed to protect renters and landlords, which will allow tenants to challenge rent rises.
Moreover, the slow rise of 100 per cent mortgages may offer an escape from renting to first time buyers.
But for now, plunging oneself into the dating world to find a second – or even a third – cohabiter to split rental costs with may just be the most viable option for those wanting to ride out the wave.