London’s spiralling rent prices are forcing some residents to leave the capital and search for cheaper accommodation. So where do they go?
The London commuter belt is the most popular choice, with 50.3% of Londoners leaving the capital staying in the South East, according to Homelet.
Broadstone, a small town in Dorset, is the most popular choice.
Where do Londoners move to?
|
Area |
Amount of former Londoners |
| Broadstone | 4.1% |
| Brentwood | 3.3% |
| Colchester | 2.8% |
| Brighton | 2.3% |
| Reading | 2.3% |
| Manchester | 2.3% |
| St Albans | 2% |
| Bristol | 2% |
| Basildon | 1.9% |
| Luton | 1.9% |
Of those leaving London, 4.1% move to Broadstone, over three times as many as those that move to more obvious choices, such as Guildford at 1.2% and Sevenoaks at 1.1%.
Broadstone is in a typical retirement area, which includes Poole, indicating that it is likely that these movers are retirees leaving the capital rather than professionals seeking a new career. However, movers are keen to stay in the South, often within commuting distance of London.
Most popular regions for those leaving London
| Region |
Amount of former Londoners |
| South East | 50.3% |
| South West | 18.9% |
| East Midlands | 6.5% |
| North West | 6.1% |
| West Midlands | 5.7% |
| Yorkshire & the Humber | 4.5% |
| East Anglia | 2.6% |
| Scotland | 2% |
| Wales | 1.3% |
| North East | 1.1% |
| Unknown | 0.8% |
| Northern Ireland | 0.3% |
| Channel Islands | 0% |
Just out of the top five is Manchester, with 2.3% of former Londoners. Bristol follows at 2%.
Both Manchester and Leeds are less popular destinations for those leaving London than before the financial crisis, signalling that the economic recovery is uneven.
Homelet found that 0.3% fewer people moved from London to Manchester between 2014-15 than 2007-08, a pattern reflected in Birmingham with 0.4% fewer and Leeds with 0.65% fewer.
High rent costs are almost certainly a factor in Londoners’ reasons to leave.
At an average of £1,515 per month, the capital’s rents are almost £600 more than the UK average and around £800 more than the UK average when London is excluded.
Annual change in average rents
|
Region |
Annual change |
| South West | 11.1% |
| South East | 11% |
| Greater London | 10.1% |
| Scotland | 9.6% |
| North East | 8.4% |
| East Anglia | 7% |
| Yorkshire & the Humber | 4.8% |
| West Midlands | 4.6% |
| East Midlands | 3% |
| Northern Ireland | 2.8% |
| Wales | 2.6% |
| North West | 0.2% |
| UK average | 11.6% |
| UK average excluding London | 7.8% |
Additionally, rents in London are increasing faster than most places in the country. Greater London’s rent growth has exceeded all regions, apart from its neighbouring areas. And at 51%, the increase in the average rent since 2007-08 is the largest by far.
Despite the sky-high rents, eager professionals will always see London as an area of great opportunity.
Homelet found that it is the fifth most popular city for new residents to move to – people moving from outside the capital sign 18% of new tenancies in London.
New tenancies going to new residents
|
Area |
Amount of new tenancies going to new residents |
| Wakefield | 28% |
| Coventry | 26% |
| Brighton | 24% |
| Nottingham | 20% |
| Greater London | 18% |
London’s 18% figure is 7% higher than the 2007-08 number, when just 11% of new tenancies went to new residents. London remains a popular place to move to.