In recent years, there have been a number of reasons that people have chosen to leave London and move further afield. Whether it’s been to find a cheaper home in commuter towns like Luton, or to find a new job in thriving cities like Liverpool and Manchester, an increasing number of people are leaving London to live elsewhere, and it seems that this is a trend not about to come to an end any time soon.
Regional towns and cities feel the benefit when there’s a London exodus, and this is something that investors will be looking at when it comes to the news that more young people are looking at moving away from the capital. A stronger appetite for regional property rentals means investors being able to source relatively cheap homes, whether existing or off-plan, and making strong income through impressive rents.
According to data published by Countrywide, the number of people leaving London is getting higher. It said that in 2017, as many as 64,672 tenants have left the capital to live somewhere else. Of these, more than 50,000 (nearly eight in ten) said they are looking to rent elsewhere rather than buying.
This is partly a reaction to the continued rising rental prices in London, which prove unaffordable for many. In excess of £1,000 per calendar month on average, and still rising, London is well known for driving people into surrounding towns and cities. However, it’s not the only reason people are choosing to leave.
Those who are priced out tend to remain on the outskirts of the city, where they can easily travel to work from every day. However, many people are looking even further afield for their next rental homes, according to Countrywide.
Tenants moving to the north of England
It said that as many as 48 per cent of those who are taking part in the London exodus are doing so to seek out homes in the north of England in popular cities like Liverpool, Manchester, Leeds and Newcastle. This is compared to just 31 per cent who said the same a decade ago. It shows an increasingly positive sentiment towards the north as a place to live, which has largely been boosted by the huge number of start-up firms and tech companies that have made the north their home in the last few years.
Countrywide also discovered that it’s predominantly tenants rather than aspiring homeowners who leave London to make the move to the north. It said that in the last 12 months, the average distance that someone buying a house will move away from London to achieve their dream is 53 miles. This is compared to the 101 miles that the average tenant moves in order to find their dream home.
This is good news for the regional rental markets -and their investors – in the north, as a continued swelling in the number of people from London heading in that direction can only be good for demand and stronger returns in years to come.