( CNN ) These days , finding somewhere to live in London is one of the city 's biggest challenges . The Greater London Authority estimates that 49,000 new homes are required in the UK capital every year to cope with its burgeoning population . In 2013 , just under 20,000 new properties were built . With space tight and increasingly expensive , some are predicting micro-living -- residency in compact homes and apartments strategically designed to maximize usable space -- could become a common theme in the coming years . `` There 's huge housing pressure , '' said Lucien Smithers , sales and marketing manager at Pocket , a micro-home developer . `` The last five years have seen a real population growth in London . We 've just crossed 8.6 million and by 2030 we 're going to be knocking on 10 million . '' According to Smithers , shaving off excess space in new-build properties can squeeze more people in while still providing all the necessary amenities of city living -- although Pocket would argue that their 38 square meter properties ( 409 square feet ) are perfectly proportioned . `` They do n't have any car parking because ( people ) do n't have cars anymore , they have space for bicycles . There 's a big living area , and you know to be honest , you do n't need a bath in your bathroom ... a wet room is exactly what 's required , '' Smithers said of the properties . Pocket 's development in London 's transport zone two would sell for around $ 350,000 , roughly 20 % below market value . Special conditions ensure the properties maintain their status as affordable housing . `` All of the developments are prioritized for sale to people who live or work in the borough ( local area ) . They have to earn under £66,000 ( $ 100,000 ) and they ca n't already own another property , '' Smithers explained . Demand is far from in short supply . `` We currently have over 15,000 people registered for it , the demand is unbelievable , '' Smithers said . Yet even with these conditions , owning a home is still out of reach for many Londoners . This is a fact recognized by Reza Merchant , CEO of The Collective , another London micro home developer . `` We 're now in a position where most people in their first or second jobs , in their early to late twenties ca n't even afford to rent a studio flat or one-bedroom flat , '' Merchant said . The Collective 's Camden development is an upmarket hostel-style set up which is aimed at young professionals featuring small bedrooms , and shared communal spaces . Individual properties range from nine square meters rising to 20 square meters ( 97 sq ft to 215 sq ft ) . `` Our prices here start at about £200 ( $ 304 ) a week , '' Merchant explained . `` That 's all inclusive of all your utility bills , so your gas , your electricity , your council tax and then also the services ... the weekly linen change , the room cleaning , the concierge ; it 's an all-inclusive rent . `` People are happy to take smaller bedrooms as almost like crash pads , '' he added . Resident Bianca Pollio pays $ 425 dollars a week for 14 square meters ( 150 sq ft ) and finds it suits her needs . `` When you live in a city and you 're a student or a professional , you do n't want to carry many things with you anyway . You want to be quite light , '' she said . The likes of Pocket and The Collective have caught the attention of businesses who are keen to keep their workers in the city . Pocket is popular with local authorities for providing living space for workers near to council offices while the Collective is in talks with KPMG to house its graduate workers . And despite the smaller spaces , neither skimps on the facilities . The Collective has a new 170,000 sq ft project in the works in London 's Wilesden Junction area that will include common facilities like spas , libraries , secret garden rooms , discos , laundrettes and private dining rooms which people can hire out when they have dinner parties . `` I think it is a new , more permanent approach to living , especially in city centers , because there 's only a finite amount of space so people ca n't build more . '' Merchant said . While the next few years will reveal how successful a concept micro-homes will become , it 's safe to say they 've given many Londoners an interesting option to consider .
UK capital needs to build 49,000 new homes a year to keep up with city 's rising population . Some suggest micro-homes can offer affordable housing solution for many in city .