As the capital becomes ever more expensive, a demographic shift is on for twenty and thirtysomethings, says Tess Reidy

Cities change. That melting image is what makes them exciting places to be. But for some twenty and thirtysomethings in London, it's not the pace but the kind of change that is worrying.

The capital is becoming more expensive, and for those without family money or very highly paid jobs, the rising cost of living is pushing them to think the unthinkable: it’s time to leave London.

According to figures released by the Office of National Statistics last week, London was the most expensive area in the UK for average house prices in 2013, at £428,000. This was a 4.2% increase from 2012, the largest across all regions. Meanwhile in the rental sector, a recent report in the Observer showed that private landlords have bought up half of the former council homes in some of London's poorest boroughs and private rents can cost as much as £230 a week more than council rents.

As the special report in today's New Review in the Observer shows, housing has become one of the key issues of the political age. Nor is it a problem confined to London. As Matthew Ashton writes in today's comment section of the Observer, young Britons are struggling everywhere.



In the 80s and 90s young people in low paid public sector jobs or aspiring creative types could find decent, affordable housing. “When I was in my 20s, if you were a writer, a musician or an actor, you could access council houses or cheaply rented private accommodation - it was easy, they were giving it away," said Les Back, 51, professor of sociology at Goldsmiths University. "As London's housing economy has shifted that's not possible anymore. These people will inevitably be priced out, how can it be otherwise?"



There is no question that people in the centre are moving to poorer parts of the city and changing the fortunes of places like New Cross, Peckham and Walthamstow. But even in these areas, which were once considered affordable for most, prices are high, journeys are expensive, and it can take hours to get across town.



Others are thinking why live like a student in a room the size of a cupboard, just to be near Dalston, when you can move away altogether.

For Claire Marsh, 30, a teacher from Stoke Newington, London isn't worth it anymore. This summer she is moving to Manchester with her boyfriend James, a DJ. At the moment, they are paying £1,100 a month for a room in a shared house. In Manchester, they are hoping to get a three-bedroom detached house with a garden for around £1,000. They will also be able to save the £550 per month that James spends on renting a music studio.



Facebook Twitter Pinterest Manchester Town Hall Photograph: Christopher Thomond

"In the past, East London was a bit more chilled, not quite as clean as other parts, but you could go to a local pub and get a cheap drink, but now, where we live, run down pubs are being renovated to look flashy and hipster-like and prices are going up."

If you can get work elsewhere, then the choice is obvious, says Amelia Handle-Clark, 29, a solicitor who has recently moved to Bristol. “Life is so much cheaper,” she explained. “What me and my husband are paying now for our own one bed flat, with a car parking space and its own little garden, is the same as I was paying for a small room in a flatshare with two others in London. I cycle around the city, rather than spending all that money on my oyster card, and because of how big London is I’m not sure I’ll see my friends any less.”



While those moving feel the benefit of being able to relocate elsewhere, many do not have this option and are suffering as a consequence at the hands of unscrupulous landlords at the very bottom end of the housing market.



As Back says, this movement of young professionals will "displace others" and hollow out central London socially.





Facebook Twitter Pinterest View from Vauxhall Bridge as construction work continues in the Nine Elms, London. Several high profile campaigners including Sir Anthony Gormley and Anish Kapoor have launched a campaign to save London's skyline from a proposed 200 skyscrapers. Photograph: Dan Kitwood/Getty Images

The situation is set to get worse. Although London is not densely populated, if you look at it compared to central Paris, New York or Tokyo, this is changing and it is starting to get more high rise blocks - more than 230 buildings of at least 20 floors are in the pipeline, most are for luxury flats - which is likely to create pressure on schools, infrastructure and space.

Sue Heath, professor of sociology and co-director of the Morgan Centre for the Study of Relationships and Personal Life at the University of Manchester, thinks that the issue of space, especially in shared housing, is very important and makes a huge difference to quality of life.



“It is very difficult for any sense of communality to emerge in houses lacking shared communal spaces, or where the only space to interact is a cramped kitchen," she said. "London is experiencing some of the worst effects of the housing crisis on young people. Landlords are increasingly offering shared bedrooms, never mind shared houses.”

Despite this, London is where the jobs are. It's prized for its buzz, creativity and universities. It will always have the status and kudos to attract young people.



"Yes it's expensive, but for me it's worth it because you have so much on your doorstep and there's the potential to earn more," said Jessica Stephens, 26, who works for a bank.



But for how long? Already, for some, there is one looming question - is a cramped and expensive space a price worth paying for living in London?



@tessreidy