According to Savills, London needs both more affordably priced homes and workspace to remain a successful and competitive city.
The UK’s largest property consultancy estimates that 58% of housing demand is for homes less than £450psf, yet only 15% of this demand will be met by supply over the next five years.
With a Savills/BCO survey revealing ‘length of commute’ to be the most important consideration for employee wellbeing, Savills identify a need for people to work in outer London to minimise commute times. However, they forecast a circa 900,000 sq ft shortfall of office space over the next five years resulting in upward pressure on rents and leaving SMEs stretched.
With Millennials typically valuing convenience and experience over material goods, greater emphasis on sharing and living collectively, and a need for affordable housing, Savills has identified five emerging trends for how we will live and work in the capital.
1. Micro living
Micro living is increasingly popular and offers choice to people with limited budgets. London lags behind New York, Tokyo and Munich in the supply of micro-units, but that could be about to change with smaller homes being acknowledged in the Housing White Paper, having previously been constrained by space standards. It is worth noting that Inspired Homes has managed to deliver more than 400 micro-apartments in Greater and Commuter London in just over three years.
Exceptional co-living rental spaces offered by providers such as The Collective and Roam will entice young professionals with a sociable environment and lifestyle offering through communal living spaces and amenities such as games rooms, cinemas and gyms.
Co-working has increased in popularity as companies seek greater flexibility from their operational environment leading to impressive growth in the capital across all qualities, tenures and price points. Savills expects to see corporates increasingly using their own space to attract start-up and scale-up organisations and suggests that co-working could also be co-located with residential.
4. Affordable workspace.
Mayor Sadiq Khan announced the creation of The Workspace Providers Board to advise on affordable workspace. He has asked local authorities to sign up to a ‘workspace pledge’ to create new space for start-ups, small businesses, the creative industries and artists. Some local authorities have introduced policies to ensure that a certain level of a new development is affordable workspace and Savills suggests that there is an opportunity for developers to provide this as co-working space.
5. Health and wellness.
According to a report by Savills and the BCO “What Workers Want”, a quarter of London’s workers believe that their office environment has a negative impact on their physical and mental health, with 86% of respondents selecting ‘length of commute’ as the most important factor. Savills suggests this could be resolved by having workspaces in locations outside central London that are closer to relatively affordable housing.
If you would like to enquire about our micro-apartments, call the sales team on 020 8688 6552.