There has been a steady increase in the number of people leaving London over the last five years due to escalating house prices. According to analysis from estate agents, Savills, the net migration from London was 93,000 in 2016. Residential property prices in London have soared to twice the national average with a resultant 58% increase of people in their 30s departing the capital. People in the 20-29-year-old age bracket represent the only group with net inward movement.
Savills have determined that the average sale price for those leaving London is just under £600k and the average subsequent purchase price is only £333k. The underlying dynamic for the increased net departure of those in their 30s is cited as a desire for younger people to be in the centre of the action but happy to get away when considerations such as starting a family come into play. For those among that group already on the property ladder, the differential in selling and buying prices provides an added incentive to leave.
An industry insider expects the trend of outward migration to continue if property prices rise higher but the latest data from property market analysts Hometrack shows a deceleration in house price inflation to 2.6% in London while other regions saw rapid gains.