The Strategist

Londoners can’t afford housing in the city anymore

01/15/2019 - 11:47

According to Hamptons International, a company specializing in property management services, Londoners spent £ 30 billion on housing when moving outside the capital this year, and this was the highest figure since 2007. Too high real estate prices in London itself are the determining factor in this trend, which is why many people simply cannot afford to buy housing there.

In 2018, residents of the British capital bought 74,350 homes outside London, which is 3.8% more than in 2017, and in general it is a record figure since 2007. At that time, Londoners acquired 113,640 houses, and spent £ 37 billion on their purchases. Now costs amounted to about £ 30 billion, reports Hamptons International, a company specializing in real estate management services.

In London, according to the experts, real estate prices have reached such a level that not everyone can afford to buy housing. Although housing prices in the provinces are also growing quite rapidly, they are noticeably lower than in the capital.
According to government data, in October the average cost of a residential building in London was £ 474 thousand, and the figure was £ 231 thousand outside the British capital. According to Hamptons International, the average cost of housing purchased by Londoners this year outside the capital was £ 399 thousand. The most popular region for moving from London was the south of England - 37% of transactions, the second most popular region is the south-east of the country, where 30% of transactions were concluded.

As noted by Head of the research department at Hamptons International, Aneisha Beveridge, "traditionally, most of those who left London settled outside of it due to changing priorities, for example, for creating a family or in search of a more peaceful life." However, the expert notes, due to rising property prices in the capital, "more and more families are considering options for buying their first home of their own just outside its borders." Many have to go quite far away, for example, to the north of the country," where they can get more for their money." However, according to Hamptons International, this year housing prices in London reached a peak and the real estate market will slow down in 2019. Accordingly, the number of people leaving the capital will also begin to decline.