Demand For Homes In London Is Moving Out

Depending on what you read, you’ll believe that no one wants to live in London, or everyone is taking advantage of the stamp duty holiday to buy a home in the English capital.

As is often the case, the truth is nowhere near these extremes, and lies in the middle. Research conducted by Rightmove suggests there has been an increase in properties which lie further out on the London commuter lines. Therefore, there is still a demand for homes in the capital, but moving away from the centre.

People want homes with more space and gardens

This is hardly a new phenomenon. Many households have decided to increase their travelling time to gain a larger home in more spacious and peaceful surroundings. With remote working a common feature, and likely to become an integral aspect of working life, this outcome is likely to be reinforced as we move forward.

When you look at the figures between September 2018 and September 2019, and then the figures for the period of September 2019 to September 2020, you will notice stark differences.

In Zone 1, the increase in the number of buyers between 2018 and 2019 rose by 41%, but for 2019 to 2020, the increase was only 7%. This is still a rise, but a much smaller one.

For Zone 2, the increase in the number of buyers between 2018 and 2019 rose by 22%, but for 2019 to 2020, the increase was 42%.

For Zone 3, the increase in the number of buyers between 2018 and 2019 rose by 21%, but for 2019 to 2020, the increase was 57%.

With Zone 4, the increase in the number of buyers between 2018 and 2019 rose by 15%, but for 2019 to 2020, the increase was 76%.

For Zone 5, the increase in the number of buyers between 2018 and 2019 rose by 8%, but for 2019 to 2020, the increase was 103%.

With Zone 6, the increase in the number of buyers between 2018 and 2019 rose by 9%, but for 2019 to 2020, the increase was only 108%.

There is a clear movement in the housing market

The further out of the zone, the greater the movement for the past year.

Tim Bannister, Rightmove’s Head of Property Data, explains: “Agents have been reporting a number of people selling up in the inner London zones and moving further out, but to see this reversal in the demand trend reflected so clearly in the data is quite something.”

Tim also said; “Some buyers still expecting to commute into the centre in the long term may have now adjusted their mindset about how many zones they’re prepared to move out, leading to zone 6 being the new favourite. This data demonstrates the short term trend of more central places like Moorgate and Bank seeing lower demand right now – although it’s worth noting that it’s off strong demand levels for these locations a year ago. I do think this demand will come back eventually but it’s not clear yet how long it will take.”

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