40% of tenants who were moving home chose to leave the capital
This was up up from 28% 10 years ago.
Most are moving to neighbouring areas, including east Surrey, Essex, Kent and Hertfordshire.
It marks the opposite trend to 2021, when more homeowners left London than renters for the first time in a decade.
People leaving London tend to be in their mid to late 30s, seeking more space for a family or looking for a quieter life.
The 90,370 tenants leaving London last year compares to 62,210 homeowners moving out. The change has been attributed to the return of rising rents in the city, with tenants looking for cheaper places to live.
Areas that directly border London, such as Essex, Kent and Hertfordshire proved to be popular.
Also, 38% moved to the Midlands and the north of England in 2022, up from 27% in 2019.
While the commuter belt is often prohibitively expensive for would-be first-time buyers, the number of homes on the market here has increased faster than in the capital this year, tempting tenants to cross the M25,
Work was less likely to affect the decision to move compared with five years ago, as renters are keeping jobs where they can work remotely and only commute into the capital occasionally.
The number of tenants leaving London is expected to continue rising as rent prices increase.
This data paints an interesting picture of the changing dynamics of London's residential landscape. Several factors are driving renters out of London, and it's worth considering some of the broader implications and trends underlying this shift:
Housing Affordability: As mentioned, the return of rising rents in London is a key factor. Living in London has always been relatively expensive, but as rental prices continue to rise, even those who have been long-term residents may find it increasingly difficult to justify the cost, especially when neighbouring regions offer similar amenities at a fraction of the price.
Changing Work Dynamics: The work-from-home trend, popularized by the COVID-19 pandemic, has shown people that they don't need to be tied to a specific location to do their jobs effectively. This has led many to reconsider the importance of living close to work, especially in a city where commuting can be both time-consuming and costly. If one can work remotely most of the time and only occasionally commute to London, living in more distant, affordable areas becomes an attractive option.
Quality of Life: The data mentions that those leaving tend to be in their mid to late 30s, typically a time when people are considering starting or expanding their families. The allure of more space, a quieter environment, and potentially better schools can be powerful motivators to leave the hustle and bustle of city life.
Economic Decentralization: The rise in the number of people moving to the Midlands and the north of England suggests that economic opportunities are becoming more dispersed. Traditionally, London has been the economic heart of the UK, but with investments in other parts of the country and the rise of remote work, other regions are becoming more attractive.
Impact on London: While renters are leaving, this doesn't necessarily spell doom for London. The city has a rich history of reinvention and has weathered many shifts over the centuries. It may mean that London's population becomes more transient, with a mix of international professionals, students, and short-term residents. This could impact the city's culture, economy, and housing market in various ways.
Implications for Neighbouring Areas: Areas like east Surrey, Essex, Kent, and Hertfordshire are likely to see increased demand. This could drive up property prices in these areas, potentially leading to the same affordability issues that London is currently facing. Infrastructure, schools, and public services in these areas may also face increased demand.
In conclusion, the movement of renters out of London reflects a combination of economic realities, changing work patterns, and personal lifestyle choices. It's a trend that stakeholders, from policymakers to real estate developers, will need to monitor closely.
We have selected a number of developments in commuter belt some of which are just a 30 minute train ride which you can view below