Housing prices in London and the South East now sit ahead of their former peak.
As London’s international economy continues to draw in highly skilled workers, the pressure on housing in the capital will intensify and, in the absence of step change in residential development in the wider region, rents and capital values will move further ahead of incomes.
These conclusions were set out in research undertaken on behalf of Cluttons by Professor Ball (2012, 2013), which highlighted the economic implications for London as the cost and quality of housing dampen the capital’s ability to compete for the best workforce.
This paper, based on a large-scale survey of a cross-section of tenure and socio-economic segments of the population in September 2013, looks at the individual stories that make up the market. It seeks to understand the drivers of behaviour in the London and South East housing market.