Tiny microflats can stop London being 'hollowed out' by second-home owners, report says

Developments of so-called 'microflats' that have floor space of just 24 square metres on five central London sites could add 1,000 jobs in the capital, according to regeneration specialists U+I

The company calculated that the tiny apartments would be able to house 3,555 more working age adults than typical accommodation on the same sites (Reuters)

A new push for “compact living” could save London from being hollowed out by investors who snap up properties and then leave them empty for months, according to new research.

Developments of so-called “microflats” that have floor space of just 24 square metres – far below the national minimum guideline of 37 square metres - on five central London sites could add 1,000 jobs in the capital, according to regeneration specialists U+I.

The company calculated that the tiny apartments would be able to house 3,555 more working age adults than typical accommodation on the same sites, helping to combat the problem of young workers being pushed further and further out of the city by unaffordable housing.

London residences are increasingly being bought by the super-rich as second homes, which has resulted in a decline in demand for the services required by people who live in an area full-time, the report said.

“The centre is now only affordable to either the very wealthy, only occasionally present, or those living in what social housing remains,” said U+I deputy chief executive, Richard Upton.

He added: “People increasingly want to live, work and play in the same place and we want to develop something that not only re-fills hollow London, but also brings communities back to life and delivers real social and economic benefits.”

James Wallman, author of a book called Stuffication, which examines the benefits of living a life with only minimal possessions, said that London’s “broken housing market is especially tough on one group of Londoners – hard-working, middle income-earning single people.”

The trend of moving to outer boroughs inevitably means living more isolated lives, far from friends and colleagues, he said. Mr Wellman, quoted in the report, said tiny but centrally-located flats are preferable, especially as modern technology means people need fewer possessions.

“One of the reasons why we are less bothered about owning things, is that we can now have all the benefits of access to a good, without the hassle of owning it.

“Spotify, for example, means you no longer need a radiogram or a roomful of CDs. Having a Kindle means that all your books will now fit into one small device,” he said.

Foreign investors snapped up 13.2 per cent of all London property sold between 2014 and 2016 according to a report released last month commissioned by the Mayor of London from the London School of Economics and the University of York.

Across England, home ownership levels have hit their lowest in 30 years while the number of people privately renting has hit its highest level since the 1960s according to the Government’s latest English Housing Survey.