Since the value of London property is now more than all property located in Wales, Scotland and the north of England combined – this has made the London housing market unaffordable for most. According to statistics provided by Halifax, average London house prices are often double in contrast to the rest of the UK; £482,000 and £223,000 respectively. Clearly, this creates a financial and emotional toll for the majority of those working and living in the UK capital.
Interestingly, the majority of property wealth is retained by the over-55s where they hold 63.3% of the UK’s net property wealth. Comparatively, only 3.3% of the UK’s net property wealth is held by those who are under 35 years of age! Further statistics provided by Halifax suggest that the average rate of property ownership in the UK currently stands at 63%; in comparison to 48% in London. This emphasises the issue of housing unaffordability in London, particularly for those who do not own a property in London.
With these viewpoints in mind, it is not of a surprise that Londoners are leaving the capital for popular regional cities such as Brighton and Birmingham; where a combined number of 12,100 people from the UK capital moving into these regional cities last year. Other population regional cities included Bristol and Manchester which attracted 4,210 and 4,150 Londoners into their cities respectively.
Overall, we anticipate London house prices to decline marginally (as demand still exceeds supply). For regional cities, house prices will rise in line with the net migration of Londoners to regional cities (which is also expected to strengthen in numbers on a yearly basis).