Migration from London is at its highest ever level. According to the Office for National Statistics, the number of Londoners in their thirties leaving the capital has risen by 27 per cent over the past five years. Unsurprisingly, the most popular destinations for these leavers are concentrated around London’s commuter belt. 

Over the past three years, 14 per cent of all Savills new home buyers across the UK were moving from London, with 39 per cent of them upsizing to a larger property. Space is key. Between 2015 and 2017, the average new build home bought by a Londoner was 14 per cent larger than a home bought by someone moving from elsewhere. 

With two-thirds of these buyers still working in the capital, new or improving railway lines around London are a key opportunity to deliver new homes where demand is highest. This is especially true if these new homes provide the space second-hand stock traditionally can’t.

Infrastructure investment and a strong local economy are likely to remain catalysts for residential demand and house price growth. The £1.7 billion Transforming Cities Fund will provide funding for improved connectivity in areas such as Greater Manchester, Cambridgeshire, the West Midlands and Liverpool City Region. These markets have seen house prices rise more in line with wages, and therefore remain more affordable. They will have the most capacity for growth over the next few years.

Extra space bought by Londoners between 2015 and 2017

Further information

Read more Market in Minutes: New homes and infrastructure