As many people have been forced to leave London due to housing shortages, or not being able to afford housing, that number has dropped to a 9-year low. As Nick Millican explains, in 2023, only just shy of 70,000 homes were bought outside of the capital of London by people.
This, from within the capital city according to the M25 index. There are several reasons that fewer people are leaving London, and those reasons include fewer homes being sold across London as a whole. And, Nick Millican adds, many other Londoners are spending less on homes when they do purchase a new home.
In the past year, there were only 20.1 billion spent by people moving out of London, whereas the entire total spent by people moving out of London last year was a total of over 48.8 billion, Nick Millican informs. Within the real estate industry, this means that Londoners spent less than half of the money moving out of London than they did in the past year.
About 77% of people who moved out of London spent less on their next home than they did moving into the home they owned in London, which reduced the amount of money spent on homes from people moving out of the capital in the past year. And for Nick Millican, this also matters.
Yet others have saved equity up in their London homes, which allowed them to pass cash for their new property, which meant they didn’t have to borrow money to move into a new home outside of London. Moreover, 4 in 10 Londoners purchased a home with fewer bedrooms than their last home had, and as the race for space is ending up costing more money and many are deeming that it’s just not worth that cost anymore. For Nick Millican, this is how the real estate industry currently is shaped.