A record 30% of homes let in London this year went to people who previously lived outside the city, according to estate agent Hamptons. The surrounding areas of Berkshire, Buckinghamshire, Essex, Hertfordshire, Kent and Surrey –- known as the Home Counties – now account for more than half of tenants moving in.
Rents in the capital have risen by 12.3% over the past 12 months, the fastest rate since the Hamptons index began in 2013. Growth is now outpacing the national average, having lagged behind during the pandemic when many quit urban centers in search of larger homes. “With Covid being pushed further to the back of people’s minds, life in the capital is slowly returning to its new normal,” said Aneisha Beveridge, head of research at Hamptons. “The footloose nature of many jobs today means that it will be culture and lifestyle rather than employment that becomes the capital’s biggest draw.”
Andrew Wishart, senior property economist at the consultancy, said the surge in borrowing costs back then caused house prices to crash by 20%. However, “the tight labor market, lower loan-to-value ratios, and a lower peak in interest rates mean the drop in prices should be less dramatic this time.”
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