After the UK capital's average home prices passed GBP500.000 last month, more people in London are choosing to become renters.

First time buyers need to save longer to be able to afford the down payment for a house on sale. They also need to borrow more making the rental markets soar. Developers and investors are also increasing. According to the Greater London Authority, household renters are estimated to rise 37% by 2025 from last year's 25%.

Investors for this project include Grainger PLC, Dutch pension-fund APG and developer Quintain Estates & Developments PLC.  KKR & Co., a New York-based private equity firm is also looking at entering the London market. According to Savills PLC, UK households are estimated to be at least 210,000 that will seek to rent in the next three years.

The March budget announced by the government includes GBP1 billion worth of incentives. This is directed towards urging multifamily residential progress and an ease to housing storage.