Solo Renter Rise: What Does This Mean For The UK Housing Market?

The number of solo renters is on the rise.

But what does this mean for the UK housing market? And what can landlords do to appeal to this growing demographic?

Are Solo Renters on the Rise in London?

Recent data shared in The Times shows that as of 2024, one in eight people in the UK lives alone – representing 13% of all households. This is an 8% rise over the last 10 years.

In the same article, it is predicted that by 2039, 10.7 million people will live alone. With rental prices becoming increasingly unaffordable, it is difficult to understand how this trend has come about. But one thing is clear – it has the potential to hugely impact London’s rental market.

What Does A Rise In Solo Renters Mean for The Housing Market?

When there is a rise in single occupancy, it impacts numerous aspects of the housing market. This can include tenancy agreements, building regulations and even property design.

It can also go hand-in-hand with certain societal trends such as there being increasingly more single people in a population.

Solo renting also has a direct impact on the economy. Single occupancy units are usually smaller in size meaning that the overall rental price is lower than larger, multi-person units.

This makes them an appealing offer to those living alone for the first time or those living alone later in life. However, solo renting, especially in a prime location like London, is an expensive business and a lucrative source of income for landlords.

Understanding solo renters can help landlords, tenants and property management companies manage the rental process more effectively and adapt to market needs.

How Can Landlords Capitalise On This?

With more people choosing to live in single-person households, rental preferences are also changing.

This is also evident by age category. For example, recent graduates or the under-30 cohort often look for shared accommodation set-ups and flatshares to keep costs low. Those over 30, however, are increasingly seeking single-person arrangements with longer tenancy agreements.

So what does this mean for landlords?

Reflecting the preference for solo living, landlords need to stay adaptable. This may mean offering more flexible lease terms and possibly redesigning their properties to accommodate a single person.

It could also impact how they market their properties. For example, advertising properties as single occupancy units and furnishing them to attract these kinds of tenants. 

From setting suitable rental prices to seeking the ideal tenants, working with a property management company in London could ease this process for landlords.

In high-density areas such as London, a rising preference for solo renting could also mean an increase in micro-apartments and single occupancy units. This trend has already been seen in cities such as New York and Seoul. When looking to invest in buy-to-rent properties, these could be a good option for long-term profit.

What Is Driving This Trend?

If solo renters are on the rise it also begs the question, how are these renters affording it? London is a notoriously expensive city – with London’s average rental growth estimated at 11.6% year-on-year – and yet the statistics seem to suggest that increasingly more people are able to afford to live alone. 

More Affordable Renting – it seems to go against everything we’re told but the Office of National Statistics have released figures suggesting that private renting households are now spending a smaller proportion of their gross income on rent.

From 2022 to 2023, the proportion of gross income spent on rent went from 41.8% down to 39.8%.  This would suggest higher salaries or more affordable rent prices. However, while renting might be more affordable, it does not mean cheap rent. A solo renter would still need to be able to spend at least 30% of their income on rent to afford to live alone.

Age Demographic – when we look at the trend of solo renters on the rise, we are not speaking about recent grads and young professionals but those in the over 30 age bracket. In fact, the demographic leading the trend is the over 65 group. 

Housing Prices – another reason for more solo renting could reflect the difficulties individuals have in owning their own home. The average disposable household income in the UK is around £35,000 according to the ONS, meaning that one income is usually not a viable option for buying a property.

Two average earners buying together, however, have a combined household income of around £66,000 according to Zoopla – enough to get a mortgage on a typically priced first-time buyer home. As a result, renting may be a more affordable solution for individuals – despite high rental prices.

Catering To Solo Renters

If individuals continue to be pushed out of the housing market, the trend of solo renting will keep rising.

This is something for landlords to be aware of. When it comes to investing in properties, a smaller property suitable for single occupancy may be a better investment long-term.

Similarly, landlords will need to think about how to best market their properties to attract solo renters. Property management companies in London could help them tailor their strategy. That way, they can attract reliable, long-term solo renters and help with everything from property maintenance to tenancy agreements.