London's sky-high prices thin the ranks of room-to-rent seekers
The cost of renting a room in the capital has held above £1,000 (S$1,726) a month since 2022, when property seekers idled by Covid-19 flooded back into the market as the economy reopened.
But the number of would-be flat sharers has declined steadily since and last month hit 57,600, a drop of about 6,500 from a year before, according to figures shared by SpareRoom, a rental website. That's half as many as there were at the peak in September 2022 and marked the slowest May – one of the busiest months for house hunters – since 2021.
The drop comes as the outlook is being darkened by rising bills, a deteriorating labour market and the US trade war, which is showing some signs of undermining confidence in the economy.
Some of the decline in room-rental demand may be due to prospective homeowners resuming their searches as the Bank of England lowers interest rates. But the larger driver is likely the fact that many young people are opting for the cheaper option of living with their parents instead: An analysis by the Institute for Fiscal Studies showed that almost a third of UK residents aged 25 to 29 lived at home in 2024, up from just one in five in 2007.
That may reflect the worsening job prospects for some young people as employers cut back on entry-level positions and recent tax hikes exert a drag on hiring in the hospitality sector. SpareRoom said that 40 per cent of those under 25 spend more than half of their income on rent, well above what's considered affordable.
'All those people in their 20s who would be driving up demand just aren't there,' said Matt Hutchinson, director at SpareRoom. 'Many young people can't afford to rent or save the required deposit on today's starting salaries so they have no choice but to stay put.' BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
16 hours ago
- Business Times
EU proposes joint borrowing to finance 400-billion euro crisis tool: sources
[BRUSSELS] The 400-billion euro (S$596 billion) crisis tool proposed by the European Commission on Wednesday (Jul 16) would be financed using joint borrowing, according to people familiar with the matter. The European Union's executive branch's new budget instrument for the period 2028-2034 would provide loans to countries so they can react faster to adverse events, said the people, speaking on the condition on anonymity. Brussels told member states that it would borrow money on their behalf to raise money for the instrument, they said. Such speed is required in emergencies like Covid or the energy crisis, which have battered the economy in recent years. The fund is likely to prove one of the most controversial aspects of the EU's budget plans, with a number of countries opposed to pooled liabilities, which they see as subsidising less fiscally prudent nations. The EU's US$2 trillion budget for 2028-2034 was bigger than many expected and drew a stiff rebuke from Germany, who dubbed it 'unacceptable.' In a first discussion with EU envoys on Wednesday evening, the commission admitted the new mechanism would be difficult to accept for some member states. They emphasised the tool would disperse money using loans, not grants. Strict controls Wopke Hoekstra, the EU's climate commissioner, told Bloomberg on Thursday that the mechanism would be funded using joint borrowing but that it would be subject to strict controls, including through unanimity among the bloc's 27 member states before any spending using the tool is signed off upon. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'This is something you have in your war chest as a potential option,' Hoekstra said in an interview. 'It can only be specific circumstances and with the explicitly given mandate of the member states. Not just when we finalise the budget, but then again in a specific crisis situation.' The yield on 10-year EU debt has risen since the start of the year to hover around 3.17 per cent, but remains below the peak seen in early March which followed the German government's plans to boost spending. The budget put forward on Wednesday kicks off a laborious process which will see the European parliament and the European Council, representing member states, weigh in. EU leaders need to give their unanimous backing. The budget must be agreed by the end of 2027. Commission President Ursula von der Leyen said on Wednesday that the 400-billion euro mechanism would give the EU a 'shortcut' in times of crisis. The coronavirus pandemic was a seachange in EU policymaking with countries signing off on a roughly 800 billion euro recovery facility, financed using joint debt. But for many countries, like Germany, that was a one-off. 'Crisis is no longer the exception, but the norm,' she said. BLOOMBERG
AsiaOne
18 hours ago
- AsiaOne
Mm2 Asia considering closing Cathay Cineplexes amid millions of dollars in debt, Singapore News
Mired in millions of dollars in debt, Cathay Cineplexes' parent company mm2 Asia said on Thursday (July 17) that it is considering closing its cinema business. CNA reported that winding up one of Singapore's oldest cinema's chains is one of the options mm2 Asia is evaluating to address its "ongoing financial challenges". It has been operating since 1939, and was originally known as Cathay Cinema. "The group has been committed towards the continued operation of its cinema business in Singapore," said the Singapore Exchange-listed company. "However, such commitment requires the support from its landlords which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the Covid-19 pandemic." Six Cathay Cineplexes cinemas have closed in the last three years, with the remaining four in operation at Causeway Point, Century Square, Downtown East and 321 Clementi. Mm2 Asia owes $3.3 million to the the landlords of its Century Square and Causeway Point cinemas. The Straits Times reported that the company has three weeks to pay the full amount or secure or compound the sum to the reasonable satisfaction of the landlord of both premises, Frasers Centrepoint Trust. Earlier this month, mm2 Asia received a demand for $3.4 million in arrears from Lendlease Global Commercial Reit, the landlord of its shuttered outlet at Jem Shopping Mall. Linkwasha Holdings has also served a demand for a repayment of $7.6 million by July 28 — the outstanding amount from a $30 million loan to finance the acquisition of Cathay Cineplexes from Cathay Organisation. Mm2 Asia said that its other options include continuing negotiations with landlords with the aim of restructuring existing obligations consensually, or try and restructure existing obligations under a court-supervised process while continuing operations. [[nid:716095]] chingshijie@
Business Times
2 days ago
- Business Times
Hong Kong wealth, fund assets hit HK$35.1 trillion as inflows surge
[HONG KONG] Hong Kong's assets under management across its asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.7 trillion) as inflows surged last year, underscoring a recovery in the Asian financial hub. Net fund inflows jumped 81 per cent to HK$705 billion across the industry in 2024, according to a survey conducted by the Securities and Futures Commission. In particular, inflows for the asset management and fund advisory business soared 571 per cent to HK$321 billion. Assets for private banking and wealth rose 15 per cent to HK$10.4 trillion, boosted by net inflows of HK$384 billion. For the city, it is a stark reversal from the Covid period, when Hong Kong was grappling with an exodus of people and mainland money was moving to Singapore. Hong Kong has been stepping up efforts to attract wealthy with tax concessions and residency plans. The city's equity benchmark is trading near its highest level in over three years, boosted by increased optimism towards technology stocks and strong demand from mainland investors. 'Hong Kong is gaining more clout than ever as a leading international hub for asset and wealth management, propelled by strong fund inflows, financial innovation and a growing talent pool,' said Christina Choi, the SFC's Executive Director of Investment Products. Hong Kong-domiciled funds authorised by the SFC recorded net fund inflows of HK$163 billion in 2024, followed by HK$237 billion in the first five months of 2025. This year, 1,237 firms took part in the SFC's annual survey, including asset managers, private banks and insurance companies. BLOOMBERG
