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London housing recovery falls behind

London’s housing recovery is lagging the rest of the UK. The post-lockdown rise in housing demand has been weaker than elsewhere, while the latest evidence points to no resurgence in house price growth. This trend may reflect the rise in working from home, which has shifted preferences away from dense city centre locations. Given the introduction of fresh virus restrictions, the near-term outlook is particularly uncertain. That said, it seems increasingly likely that London house prices, transactions and rents will underperform over the next few years.

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