The usual cycle of workers upsizing to a larger property after a year or so has stalled, as many are deterred from moving by rising rental prices and a desire to keep their outgoings low, as concerns over job stability continue.
This shortage of one-bedroom properties has been exacerbated by the continuing difficulty in obtaining mortgage finance, which is preventing many tenants from purchasing their first home.
Lynn Hilton, Partner said:
"The combination of a difficult mortgage market, rising rents and general economic uncertainty has put significant pressure on the lower end of the prime London lettings market. Previously one-bedroom properties were often seen as pied-à-terres or short-term homes, but the market has shifted so that single professionals and couples, who would have previously chosen a two-bed, now see the spare room as an unnecessary luxury.
"Young professionals arriving in London to take up positions in the City have noticeably lower budgets. They used to take two-bedroom apartments at £550 per week, but now one-bedroom properties costing in the region of £350-£400 per week are in much greater demand."
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