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Young professional London

  According to recent figures from the Office of National Statistics (ONS), 60% of inner London’s working age population are graduates. This is more than twice the number in the North East (29%) of England and considerably higher than both Wales (33%) and Scotland (41%). Young professionals make up a significant proportion of the capital’s workforce and where they choose to live is helping shape London’s housing market. While proximity to work and amenities play an important part in determining where they live, house prices and rental costs are considerable drivers too. The pattern is a familiar one. As an area becomes established, so prices rise, forcing would-be incomers into cheaper, neighbouring postcode districts. And so the cycle begins again. Research not only illustrates the point, but shows just how marked an influence young professionals have had – and continue to have - on defining London’s housing market. Looking at the age profile across all London boroughs there are six that stand out. These are boroughs where over 50% of residents are aged between 20 and 44 – the London average is 43%. In ascending order they are Hackney, Lambeth, Islington, Hammersmith & Fulham, Wandsworth and Tower Hamlets. What is particularly interesting is that these are all boroughs that have seen significant price rises over the last decade. Young professionals have moved into what were once very affordable areas, and over time, driven up both demand and prices. The table below demonstrates the point further. Ten years ago house prices in Islington were 12% higher than the London average, in 2013, they are 40% higher. It’s a similar story in Hammersmith & Fulham where prices today are 65% above the London average, compared to 25% a decade ago and in once affordable Hackney, where prices were 6% lower than the London average, they’re now a staggering 22% higher. As the cycle continues, where will young professionals look to next as the areas we have highlighted become too expensive' Looking ahead lower value areas in boroughs whichhave already seen an influx of young professionals look set to benefit from increased demand.This could include neighbourhoods such as Dalston in the London Borough of Hackney and young professional renters and purchasers already relocating from more expensive areas in the borough, such as Hoxton and Shoreditch. We expect areas such as Camberwell (London Borough of Southwark) and Acton (on the borders of Hammersmith and Fulham and Ealing) will continue to see an increase in demand from young professionals.Both the boroughs of Ealing and Southwark have young populations, with 49.7% of Southwark residents and 43.1% of Ealing residents aged between 20 and 44, and good transport links into central London. Prices in the London Borough of Southwark are currently 12% higher than the London average with prices in Ealing 6% lower.  

 

1246_Dataloft_Winkworth_Ingographic v3

According to recent figures from the Office of National Statistics (ONS), 60% of inner London’s working age population are graduates. This is more than twice the number in the North East (29%) of England and considerably higher than both Wales (33%) and Scotland (41%).

Young professionals make up a significant proportion of the capital’s workforce and where they choose to live is helping shape London’s housing market. While proximity to work and amenities play an important part in determining where

they live, house prices and rental costs are considerable drivers too. The pattern is a familiar one. As an area becomes established, so prices rise, forcing would-be incomers into cheaper, neighbouring postcode districts. And so the cycle begins again.

Research not only illustrates the point, but shows just how marked an influence young professionals have had – and continue to have - on defining London’s housing market.

Looking at the age profile across all London boroughs there are six that stand out. These are boroughs where over 50% of residents are aged between 20 and 44 – the London average is 43%. In ascending order they are Hackney, Lambeth, Islington, Hammersmith & Fulham, Wandsworth and Tower Hamlets.

Young Professional London-1

What is particularly interesting is that these are all boroughs that have seen significant price rises over the last decade. Young professionals have moved into what were once very affordable areas, and over time, driven up both demand and prices.

The table below demonstrates the point further. Ten years ago house prices in Islington were 12% higher than the London average, in 2013, they are 40% higher. It’s a similar story in Hammersmith & Fulham where prices today are 65% above the London average, compared to 25% a decade ago and in once affordable Hackney, where prices were 6% lower than the London average, they’re now a staggering 22% higher.

As the cycle continues, where will young professionals look to next as the areas we have highlighted become too expensive' Looking ahead lower value areas in boroughs whichhave already seen an influx of young professionals look set to benefit from increased demand.This could include neighbourhoods such as Dalston in the London Borough of Hackney and young professional renters and purchasers already relocating from more expensive areas in the borough, such as Hoxton and Shoreditch.

We expect areas such as Camberwell (London Borough of Southwark) and Acton (on the borders of Hammersmith and Fulham and Ealing) will continue to see an increase in demand from young professionals.Both the boroughs of Ealing and Southwark have young populations, with 49.7% of Southwark residents and 43.1% of Ealing residents aged between 20 and 44, and good transport links into central London. Prices in the London Borough of Southwark are currently 12% higher than the London average with prices in Ealing 6% lower.

Young Professional London-2

 

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