Why micro-flats are the solution to London’s housing crisis

COMMENT: Early in 2020, the latest new co-living block in London will open its doors to residents. The Italian Building in Bermondsey, SE1, an 8,000 sq ft converted Edwardian office block and run by Mason & Fifth, and funded by the ethical investor FORE, comprises furnished bedroom suites that have a bathroom and kitchenette, and are just 170 sq ft. But the real draw for the target market – millennials struggling to afford to buy or rent in the capital – will be the amenities. The development is a cross between a large shared house, a private members’ club and a health retreat. Residents have the option to use services such as an in-house chef offering a buffet breakfast, family dinners and packed lunches, while there is a wellness pavilion for yoga, Pilates and meditation, in addition to a daily running club and host of bespoke resident experiences. Such schemes are primed to become an increasing fixture on the property market, and could become a growth area for developers.  Buying and renting is out of reach for many millennials. According to a recent survey, two-thirds think they’re unlikely to ever own a home. The 18-34 age group is being squeezed hardest in London, with average house prices at £473,000. Potential first-time buyers in the capital typically must save for 10 years to be able to afford a deposit and, with the London median gross annual wage £35,700 and single tenants spending 46% of their earnings on rent, buying or renting a home is out of reach for most. At the same time, the number of houses being built in London is rising at a slower rate than in any other region, according to Savills. It found just 40,735 energy performance certificates — a legal requirement for a new home — were granted in London in the 12 months to June 2019, a 6% rise on the previous year. Across England and Wales as a whole, the total rose by 27%. Add to this projections that the capital’s population will grow faster than any other region, increasing to 9.5m by mid-2026, and we have a perfect storm for millennials – a shortage of affordable housing for those who want to live and work here. At present, many are driven out of the city and compelled to endure long commutes, when they would rather live in a smaller home closer to their workplace and the world-class amenities London offers rather than reside in a larger flat in the suburbs. That’s why building more co-living developments and micro-flats can be a solution – small but cleverly designed homes that cater for this age group. The UK government’s space standard, introduced in 2015, allows a minimum floor plan of 37 sq m for new one-bedroom flats. A common accusation against micro-flats is that they are little more than shoeboxes – though the alternative is often flat-sharing, which usually offers less space and less privacy. And neither does size mean a lack of quality – it’s what you do with it that counts. In fact, London can learn from the award-winning micro-flats in other crowded cities. [caption id="attachment_921869" align="aligncenter" width="847"] One of the bedrooms at Old Oak Common[/caption] In New York, for example, the Carmel House micro-housing project, where the biggest apartments measure around 33 sq m, won an award from the American Institute of Architects for its innovative minimalist design which makes super-small living possible. In San Francisco, an apartment block where the main living space comprises around 12 sq m uses the ceiling as a “fifth wall”. Furniture and belongings are stored above head height inside ceiling boxes, making the small space feel spacious, and can be raised and lowered at the touch of an iPad. And in Taipei, Taiwan, an 18 sq m apartment won an architectural award for its clever use of living space, including a half-height mezzanine level for sleeping. Young people also value what’s outside their home and accessible amenities just as much as their living space. That’s why many of these schemes have “bolt-ons” such as communal areas, shared workspaces and gyms. London is starting to approve some schemes. As well as the Italian Building, Pocket Living, a developer that has build around 600 one-bedroom apartments with 38 sq m of floorspace, was recently lent £25m by mayor Sadiq Khan to build more micro-flats. And in west London, the Collective Old Oak is the world’s largest micro-apartment building, which offers 546 private units and a wide array of communal spaces. But developments are still stymied by minimum floor space restrictions. As think tank the Adam Smith Institute has argued, the Greater London Authority should scrap the 37 sq m minimum and replace it with a minimum standard of living. In New York, for example, the local government relaxed the regulations governing size. Before 2016, a minimum apartment size had to be 400 sq ft (the same 37 sq m). But the requirement was waived for My Micro NY, a building of 55 apartments ranging from 250-370 sq ft (23-34 sq m). Again, as well as private units, it offers its residents a number of communal areas including a gym, a lounge and a roof terrace. Meanwhile in Japan, 25 sq m is the recommended minimum for one person. As micro-apartment developments in London and other cities are demonstrating, size is of less importance than the quality of accommodation. Micro-housing is not a panacea to the housing crisis, nor is it for everyone. But for those millennials struggling to get a toe on the housing ladder it provides the opportunity to live centrally and close to work, entertainment and other amenities at a more affordable price. Legislators need to recognise that as long as the quality is there, size shouldn’t matter. Clive Docwra is managing director, McBains, a surveying and design agency specialising in property, infrastructure and construction with operations in the UK and Europe