Micro homes should be built to offer cheaper rent to young people and ease the housing crisis, says think tank

A WAVE of micro homes should be built to offer cheaper rents to young people and help ease the housing crisis, a think tank declares today.

The Adam Smith Institute declared size was less relevant because busy youngsters often spend little time in their homes.

A chronic lack of housing has meant tenants now spend a third of their income on housing compared to a fifth only 15 years ago.

In a report published today they have called for planners in London to remove minimum space requirements for co-living units and micro-homes but keeping them “appropriately sized to be comfortable and functional for a tenant’s needs”.

Micro-homes are purpose designed flats with floor space below 37sqm that make innovative use of space to expand choice available.

The ASI’s Matthew Lesh said: “Small, but perfectly formed micro-homes would expand choice for young Londoners.

“There are many who would rather live close to the city centre, in a building full of amenities such as game rooms and co-working spaces, rather than spending hours commuting every day.”

He added: “London’s housing crisis is not just an economic problem, hurting growth because people cannot live where they would be most productive, it is also having very real and serious political ramifications.

“The lack of housing affordability is leading many to lose faith in the entire free market system.

A previous report by the campaign group London YIMBY for the Adam Smith Institute found London rents have been inflated by a staggering 300% due to planning restrictions with over 75% of the cost of development coming from planning red tape.

By 2025, 3.5m Londoners will be living in rented housing, with 79% of adults moving to London in the last year renting.

The average house price is 5 times higher than 50 years ago.

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