London’s Changing Demography Increases Housing Demand in London

An intesting article in The Economist last month on the changing demography of London blows away the old theory that people gravitate to the capital to go to university and work, then move away when the kids require more space, education or when they retire. What’s behind this change? – the lack of access to affordable mortgages and economic austerity for the forseeable future means that the young are forced to stay put and the grandparents are wanting to stay near to them.  The article further states that on current projections, London’s population will grow from just under 8m today to over 9m by 2031, which is equivalent to adding the entire population of Birmingham, our second city.  This demographic shift and resulting demand for more school places, more healthcare services and above all more housing, coupled with the current housing shortage and austerity measures that are squeezing government finances like never before is creating a perfect storm of a headache for London’s planners.  

The long-running housing crisis will not go away and it seems the problem will only get bigger. Adversity often breeds great innovation.

The Government are looking at alternative/innovative ways to increase housing supply and Mill Group are part of this discussion.  If however, the predictions for London in this article hold true – if action isn’t taken soon, it may be just too late…

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Mark Hardaway

About Mark Hardaway

Managing Director at Mill Group's asset management subsidiary Investors in Homes Management Limited, Mark has worked with Mill Group since 2008. He has previously held international senior management positions in the property, management consultancy and IT industry.
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