Londoners spent £55bn ownership property outside the British wanted this year as the coronavirus pandemic sparked a rush for increasingly living space, equal to an wringer of official data.
The findings by manor wage-earner Hamptons when up growing evidence that the pandemic has realigned housing preferences, with potentially serious consequences for the city’s population and housing market.
Residents of the wanted poured £54.9bn into housing outside Greater London in 2021, the highest total for a single timetable year, ownership property in passenger towns and remoter afield, equal to the study which used HM Revenue & Customs data.
Londoners purchased well-nigh 112,780 homes outside of the capital, just shy of the record 113,640 bought in 2007, which was a red hot year for the housing market, Hamptons said.
The total spent this year smashed the previous record of £36.6bn in 2007 and was up scrutinizingly 60 per cent on 2020 partly considering of the rapid house price inflation over the past 12 months.
While the upper number of transactions has been a nationwide miracle this year, the increase in Londoners ownership outside the wanted has been particularly pronounced, equal to the study.
By forcing offices to tropical or reduce capacity, Covid-19 has triggered a spike in homeworking, which looks set to be sustained at least into the first quarter of 2022 considering of the rapid spread of the Omicron coronavirus variant.
That is one reason why movers are contemplating properties remoter unsuitably than they might have washed-up previously, said Neal Hudson, director of housing market research visitor Residential Analysts.
“There’s been a unstipulated reassessment of housing, with people no longer needing to commute as they used to. That is particularly true in London,” he said.
The prospect of spending increasingly time working at home has prompted what manor teachers describe as a “race for space”, with buyers looking for larger homes with gardens over municipality centre flats.
Flats have moreover lost some of their shine as a result of the cladding safety scandal in the produce of the Grenfell tower fire in 2017, which has overwhelmingly unauthentic suite blocks built over the past 20 years.
The pandemic was largely responsible for the uncommonly upper number of people leaving the UK wanted municipality this year, said Aneisha Beveridge, throne of research at Hamptons, subtracting that “2021 is likely to mark the largest out migration from London for at least a generation”.
She added: “After this year’s frenzy, we expect the numbers to fall when a little, particularly as house prices outside the wanted are set to protract outperforming London over the next few years.”
But the majority ownership outside Greater London had remained within the capital’s orbit, the study found. Scrutinizingly half bought in the south-east and a quarter in the east of England. The passenger towns of Dartford, St Albans and Elmbridge were particular hotspots, equal to Hamptons.
Over the last three decades, residents have tended to leave London from their mid-30s, as they start families and squint for larger, increasingly affordable properties. The population of the municipality kept growing during that time considering of immigration from the EU and a higher level of births than deaths.
But Hudson and Beveridge suggested that, if sustained, the higher outflows coupled with slower inward migration post-Brexit could slow the growth of the capital’s population.
“If there is downward pressure on the size of London’s population, that could put some downward pressure on house prices and rents,” said Hudson.