The Shrinking British Home: Maximising Space in London’s Smallest Living Spaces

As London’s housing market continues to spiral, with space becoming an increasingly short supply, the necessity of maximising every square foot in the capital’s smallest homes has never been more critical. The trend towards compact living across the UK is rising with the co-living market currently being at 1.9 million people in 2024 and 31.6% of those being based in the capital. Co-Living Group has reported London is set to reach a population of 9.5 million by 2026 it is expected we see the number of people co-living increase. Those homeowners and renters will be seeking smart design solutions to ensure their living spaces remain functional and comfortable despite their reduced size.

The Rise of Micro-Apartments in London

With the predicted rise of the population in London by 2026 London is witnessing a significant surge in the development of micro-apartments with 1 in 20 homes in London being a micro-home or apartment providing less than 37 metres of living space (King’s College London). With the number of these dense living spaces in London having doubled in the past 5 years this emphasises the the growing trend towards minimalist living.

This is a direct response to an increase in property prices and the vast limit of property available leading to landlords to turn their properties into flats with 49% of London’s housing stock being made up of flats (English Housing Survey). This is making smaller homes for individuals to co-share not just a choice but often the only affordable option for those seeking places to live in London.

London’s Rental Market: Space vs. Location

London is a city where location is perceived as more important than size, London’s renters often find themselves in smaller and smaller spaces. The average London floor area of dwellings in London as reported by the English Housing Survey was 84 sq m which is the smallest average for England as a whole. With London having the smallest average this has led to renters being forced to prioritise efficient use of space. The English Housing Survey indicates that the number of households renting privately has doubled since 2000, reflecting a  growing need for adaptable, space-saving solutions in rental properties across the capital.

Architects Journal reported that 74% of completed co-living developments have been delivered in London. This highlights that in the capital has a big pull compared to the rest of England with a trade-off between location and space being a critical factor in housing factors. With those seeking a more populated city with more opportunities, they are willing to sacrifice space for location.

The Downsizing Phenomenon: A London Reality

Property prices in London have continued sitting atop when it comes to property price performance over the last half-century. Even after adjusting for inflation, London prices have increased by a huge 13.5% per year on average, up 677% in total. That’s an average increase of over £9,000 every year over the last 50 years (Mortgage Introducer). This is leading to many London choosing to downsize. The UK House Price Index revealed that smaller, more affordable properties are in high demand, making the ability to maximise space a key  consideration for both buyers and renters in the city.

Alice Haine, Personal Finance Analyst at Bestinvest, says:

“If people need to be in the office two or three days a week, it’s more likely their aspirations will be limited to smaller properties. In London, 90% of first-time buyer homes were either  flats or terraced properties, suggesting a shift towards living closer to work. Naturally buying a home in the capital will constrain affordability even more, which is why a smaller  property makes sense over something more spacious”.

The Minimalism Movement Gains Momentum

Coinciding with these trends is a short surge of public interest in minimalism and decluttering. In 2024, there have been 6,400 Google searches for the term minimalism living and 234K searches for decluttering reflecting the shift towards a more efficient and space-conscious living. For Londoners embracing is not just a lifestyle choice but a necessity with those choosing to live in the capital having little choice but to maximise the functionality of their increasingly smaller living spaces. With the prediction of London’s population rising which  will increase the number of co-living places, London will continue to face challenges in housing availability and affordability. The ability to efficiently utilise space in the city’s smallest homes will be key to maintaining a high quality of living.

For effective space-maximising strategies expert Ezgi Cebi, Architectural Designer at Planning By Design, has crafted a blog on maximising space in the UK’s smallest homes.