Knight Frank issues warning for London economy as record numbers leave capital

High house prices in London have contributed to record numbers of people leaving the capital for more affordable living elsewhere, Knight Frank claims.

The agent has analysed migration numbers from the Office for National Statistics (ONS) which showed that 336,000 left London for other UK cities in the year to June 2017, up by 15% annually.

In total, 229,405 individuals moved to the capital from other parts of the UK and 336,013 left in the year to June 2017, putting London’s net outward migration at 106,608. This is up 14% annually and 55% higher than in 2012.

The highest proportion of movers from the capital ended up in Scotland, but Birmingham and Brighton were the most popular destinations in England, according to Knight Frank’s analysis.

Londoners in their 30s formed the largest cohort leaving the capital, with the most popular destinations concentrated around the capital’s commuter belt such as Elmbridge, Dartford, Reigate and Slough.

The only age group that had a positive net migration figure in the capital, according to the statistics, were those in their twenties, which Knight Frank attributed to the large number of students moving to London to study.

Tom Bill, head of London residential research at Knight Frank, said: “While this highlights a potential longer-term risk, housing affordability is likely to have helped sway the decision of some to leave London.

“While this highlights a potential longer-term risk for the capital’s economy, for others, exceptional house price growth in London in recent years will have enabled them to make the move.”

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