London’s population has swelled by nearly 40 per cent since the late 1980s. But the pandemic has applied the brakes. An estimated 700,000 city dwellers have already moved out. More may follow as people re-evaluate where they want to live. Big employers are dabbling with hybrid models that involve working from home. Staff who do so regularly will want more space.
If London’s popularity dimmed, so would house prices. The average £2m Central London property fell in value by 4 per cent last year, while one of the same value in the country rose 5.5 per cent, said Savills. That is a break from the trend of the past few decades. Average London prices went up more than 12-fold between 1985 and 2018, compared with an increase of less than eight-fold for the UK as a whole, according to Land Registry figures.
Cities such as London offer long commute times and a high cost of living in tandem with well-paid work based in offices. They could be particularly affected by the work-from-home trend.