Report: London’s Economic & Housing Prospects 2024
Mitheridge commissioned Oxford Economics to conduct independent research into the fundamental economic indicators for London and their anticipated impacts on the housing market. The third in the series, it follows previous studies published in 2021 and 2023.
The report details Oxford Economics’ latest findings, identifying and forecasting key drivers of London’s economy, housing market trends and future housing needs.
The report’s key findings are:
- 10 million – Expected population of London by 2034. This is driven primarily by natural growth and robust net migration and is a milestone set to be achieved three years earlier than previously forecast.
- 1.9% – Expected annual GDP growth in London from 2025-2035. Despite slower GDP growth in recent years, London’s economy remains robust with low unemployment and a rebound expected. Over the next decade, London’s growth is set to outpace New York and major European capitals.
- £515,000 – Average price of a London property in Q2 2024. While house prices have stabilised, affordability challenges persist due to high deposits and rising mortgage costs.
- £2,100/month – Average private rents in London in August 2024. There has been a 9.6% year-on-year increase in private rents, making London the least affordable rental market in the UK.
- -46,000 – Current annual shortfall of new homes. This is compared to the Labour government’s target of 81,000 homes per year, reflecting chronic undersupply.
- 15% – Year-on-year increase in Build to Rent supply in 2024. This reflects the growing popularity of purpose-built rental housing, including co-living space. By mid-2024, London accounted for nearly half of the UK’s co-living developments.
The opportunity for London is immense. Economic and population growth within the city can catalyse the UK at large, but they are only achievable if we have the homes to match. There is a critical need to meet the ongoing shortfall in supply with high-quality homes.
To find out more, read the full report:
For more information
Please contact: lroberts@nepean.co.uk
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