The COVID-19 pandemic significantly altered the living and working patterns of millions, including the residents of London. With a rise in remote working capabilities, many Londoners seized the opportunity to move to the countryside, searching for larger living spaces and greener surroundings. However, this trend is seeing a reversal.
The Return to Pre-Pandemic Levels
Property industry data reveals a marked decline in the number of Londoners searching for homes outside the capital. This shift comes as more employers are encouraging—or requiring—their staff to return to office settings. Rightmove, a leading property website, has analysed movement patterns and found that the proportion of London-based house hunters looking to relocate has reverted to the pre-COVID average of about a third. This is a significant drop from the peak of almost half in August 2021.
Tim Bannister, Rightmove’s director of property data, comments on the phenomenon, noting a “resurgence in London back to pre-pandemic levels” and an overall “increase in the popularity of cities among buyers.”
Factors Influencing the Shift
The easing of pandemic restrictions and the reopening of urban attractions such as restaurants and entertainment venues have made city life appealing again. Additionally, the trend of remote working is not as uniformly accepted across all sectors. While some industries continue to support hybrid or full remote working setups, sectors like financial services are keen on having their workforce onsite.
The Role of Flexible Working
Despite a general trend toward returning to the office, the desire for flexible living locations hasn’t completely waned. Bannister adds that the post-pandemic flexibility still influences some buyers’ choices, showing that people are searching across a wider range of areas than before the pandemic.
Market Recovery and Pricing Trends
The UK housing market is showing signs of recovery after a challenging 2023, where high and unpredictable mortgage rates deterred buyers and led to falling house prices. This year, however, buyer confidence has been bolstered as interest rates have stabilised.
Sales and Mortgage Approvals Increase
Zoopla reports that the number of property sales in April increased by 12% year-over-year, marking the fourth consecutive month of annual gains. Furthermore, the Bank of England highlighted that mortgage approvals in March reached an 18-month high, signaling a strong return of buyers to the market.
London’s Market Resilience
In terms of pricing, London properties are beginning to recover from last year’s declines more robustly than those in surrounding regions. Rightmove has observed that homes in London are more likely to sell above asking price compared to properties elsewhere in England and Wales, a situation last seen in 2016. This trend indicates a competitive market where sellers are often in a stronger negotiating position.