How London’s Falling Population is Affecting Home Valuations and Prices

London’s population has lately been declining for the first time in thirty years. The decrease in population in the capital of London has been triggered by the latest Covid-19 pandemic and this has made a lot of people especially those who were not born here to vacate the capital.

Coronavirus struck London hard at the start of 2020, and several businesses were forced to close as a result of the government’s pressure to impose a movement ban to stop the virus from spreading.

Many inhabitants of London were left jobless as a result of these health reforms, prompting the majority of them to flee the capital and seek employment in other towns and countries. For the record, about 700,000 immigrants are thought to have left, resulting in a reduction in the city’s population.

The decline in London’s population meant that fewer rental spaces were needed, which had an impact on property sales in the city. Since you can’t equate London’s house prices with those in nearby towns, many residents who fled had to look for cheaper houses and rentals outside the region.

However, some landlords in London have agreed to lower their rental rates to keep as many tenants as possible, as it is preferable to make less money on rent than none at all. As a result, some residents stayed behind to take advantage of the lower rent rates.

Many potential buyers and investors have withdrawn their interest in property in London as a result of the restrictions and suspension of movement in and out of the area, resulting in a dramatic drop in property sales.

While some hopeful people assume that due to the Covid-19 vaccine, London’s population will return to its usual percentage, most residents see the change away from the city as a benefit since many offices already have their workers working from home, and with the savings on rental houses, all you need is secure internet and you can do it from your house.

The massive moving of people from the London capital has also seen property prices increase in the outcasts of London and this is probably a good thing to improve economic wellness in those places. The government also issued a stamp duty holiday by waving the charge on the first 500000 pounds paid for any purchase of a home, this saw many residents take this advantage and it contributed to an increase in house prices although the waiver was set to end in March, 2021.

Another factor that has impacted London’s population is Brexit, which has resulted in many EU citizens refusing to visit the UK, negatively impacting London’s economy. Analysts expect that this will harm London’s economy, particularly given the unpredictability of events in the coming months due to the presence of the Coronavirus.

While most people who left London due to the pandemic may return to city life, many of them have sought refuge outside the city with better housing conditions, and these are almost certainly people in their 30s and 40s who are either starting a family or getting ready to buy their first home. Because of the population decline, many young people would be unable to purchase homes in London unless things change.

As a result of the migration of immigrants out of London, house prices and rents in the capital are falling, while house prices and rents in towns and countries outside London are rising.

Since the Coronavirus is still an issue, despite the implementation of a vaccine, we expect London’s population to continue to decline. Brexit has undoubtedly played a role, and given that the number of EU citizens visiting the UK has been declining since 2016, London’s economic stability will remain uncertain. One thing we know for sure is that London is still set to change a lot due to these factors.