The London Housing Market has often set the tone for the rest of the UK housing Market. Price rises in London have often percolated to the rest of the country. However, certain features of the London Housing Market make it unique to the rest of the country. These reasons explain why the London housing market is more volatile than the rest of the country and also why house prices are higher in London.
For in depth look at the problems of the London Housing Market
Why London House Prices are expensive and volatile
- Increase in number of households from 2.4 million 1975 to 3.1 million 2013 (est)
- Rise in net migration from overseeas (recently from Eastern Europe – Poland, in particular)
- Prestige of London Financial Centre
- Large bonuses paid by London Finance companies in recent years. (such bonuses are not typical of rest of country
- Shortage of supply. New housing accounts for only 0.5% of total housing stock.
- Falling unemployment in London.
- Desirability of living in Capital