[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]A succinct weekly take on the London property market and a roundup of headlines from market observer John Lim. Subscribe to the Friday Roundup here: http://pbra.in/1Gli7UL
- London housing costs are a big obstacle for employers and employees alike.
- Rent in London average £977pcm which consumes 50.4% of the average Londoner’s salary, according to a recent report by the Global Cities Business Alliance.
- This mirrors other top cities in the world, such as New York and Hong Kong, where housing costs take up 63.1% and 64% of income respectively.
- For years, new entrants to London have turned to house-sharing – renting one room in a multi-bedroom house – as an affordable option.
- Now investors are professionalising this space and have given house-sharing a new name: co-living.
- Emphasis is placed on community and shared experiences. Usually menial tasks such as restocking toilet paper and cleaning (potential sources of conflict) are taken care of by the company. Tenants have to go through an interview process to determine suitability rather than simply prove their income to be eligible to join.
- The trend began in the US with startups such as Campus, OpenDoor, and Common, and it has now made its way to London.
- London now boasts the world’s biggest House in Multiple Occupation (HMO), a formidable building with 550 (very small) bedrooms, recently built by The Collective.
- Critics describe this as little more than adult dormitories, where tenants are crammed into as efficient a space as possible to allow landlords to maximise their returns per square foot.
- Having personally visited a number of these co-living schemes, I can see a clear spectrum with The Collective on one end (extremely aggressive, small rooms and high volumes), and companies such as LYVLY on the other, which manages houses with a maximum of 6 bedrooms and are much more intimate.
- As long as housing costs remain stubbornly high in the Capital, fuelled by the undersupply of housing especially at the affordable level, co-living concepts will continue to be popular.
- It is likely that, as much as co-living companies and their members rave about the benefits of living with other people, most people would prefer to have their own apartment if they can afford it.
Here’s a roundup of on what we think are the big news stories this week:
- The Duke of Westminster, the richest property developer in the UK, has died, leaving a £8.3bn inheritance that includes almost 300 acres in Mayfair and Belgravia to his 25-year-old son.
- New official data from the ONS shows that UK’s construction sector has re-entered recession in the first half of the year, with a worse-than-expected decline in output of 2.2 percent.
- The Brexit vote has knocked £30,000 off an average property in London between in the month between June and July, according to estate agent Haart, with the impact most dramatic in north and west London.
- After two and a half years at the top, the UK capital is now no longer the most expensive city in the world in which to live and work, according to real estate firm Savills. It now ranks third behind Hong Kong and New York.
A sales advert for a flat in Clapham features various Pokemon within the property, including aSquirtle in the bathtub to a Pikachu on the sofa, in the hope of attracting a buyer.
(see ad here: https://www.settled.co.uk/listing/london/sw4-7ea/1-bedroom-flat-for-sale)[/vc_column_text][/vc_column][/vc_row]