More than 10,000 one-beds priced between £350,000 and £550,000 are currently up for sale across the city.
This is in part due to the UK’s Renters’ Bill, which will bring in significant changes for both tenants and landlords and aim to create a fairer rental market.
Nathan Khider, owner of Nathan K Real Estate, said: “With the Rent Reform Bill coming in, it is no longer attractive for investors to own one-bed flats.
“The cost of leaseholds, service charges and everything has increased, as well as the tax on buying properties.
“The Bill will abolish no-fault evictions, meaning that it will be near-impossible for landlords to ask their tenants to leave.
“Therefore, these investments are becoming undesirable. It is much safer and easier to simply put the money into a bank and earn interest.”
A recent report revealed that inner London property prices dropped by 2.1% in July 2025.
The property expert added: “There is no demand at the moment and far too much supply, meaning the house prices in London have slumped.
“However, the prices will eventually go back up just like they always do. I predict that there will be a 15% slump, and then prices will be on the rise again.
“It is not easy to build houses in London and so these will definitely become occupied over the next 15-20 years. Once they do, house prices will go up again – it is inevitable.
“I have also seen a lot of interest in one-beds at the moment, due to offices encouraging employees to return to the office 4-5 days a week.
“With hybrid working starting to fade away and workers looking to return to the capital city, I would imagine that this slump in prices will not last for long.”
Nathan specialises in buying and selling some of London’s most unique and exclusive homes, working with high-profile clients across the entertainment and business industries.
Once homeless and living in his car, he left school at 15 without GCSEs before carving out a career in real estate and becoming a self-made millionaire.