A growing preference for convenience and location over property size is helping to drive demand for 'micro-apartments' in London's prime market.
'Micro-apartments' are increasingly in demand in prime central London, as tenants opt for location and lifestyle over square footage.
Tenants renting in London's prime central areas are choosing to prioritise convenience and the lifestyle benefits of renting a property close to work or study, even if that means having to compromise on the size of the property.
Research carried out by the London Central Portfolio shows there is a growing preference for smaller, more affordable properties in some of the most desirable residential parts of the capital. This might be renters who want to live near to a particular university or near to their job.
London's luxury sales market has slowed in recent months, with stamp duty increases likely being a defining factor. However, in the past year, 42% of the properties let to tenants have been smaller apartments or studios. Though demand for smaller properties has continued, demand for larger properties has weakened.
Naomi Heaton, Chief Executive Officer at London Central Portfolio, said: "From a rental market perspective, a dynamic which was notable during the credit crunch is again apparent as corporates cut their housing budgets. Tenants are now looking for more affordable options, choosing central locations and an easy commute to work or university".
Heaton continued: "This is reinforcing the new trend for the globally mobile to seek highly specified micro-apartments, with well optimised space, whilst families tend to opt for more suburban locations where smaller budgets can stretch to larger homes and ideally the possibility of outside space."
There appears to be a trend emerging, which sees tenants opting for high specification, newly-refurbished and pristine 'micro-apartments' in convenient locations, with these types of properties proving easier to let out.
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