As recently as 2016, London was the fastest-growing English region, but its population growth rate has halved in the space of a year, driven mainly by people up to the age of 40 with young children deciding to pack up and leave, according to the ONS.
It may surprise you to know that almost 94,500 people made for the countryside during 2018 (16% more than in 2016) the highest level since 2007, whilst almost one in three of leavers are also HENRYs (High Earners Not Rich Yet) in the 20-to-29 age group.
Moving out to the South and East of England remains the target destination. Statistically 38% leave for the South East and 30% to the East; one in every six homes sold in the East of England is sold to an ex Londoner. It was also found that since 2010 the proportion moving to the North and Midlands has tripled. The first six months of 2018 saw one in five, 21%, of London leavers moving to the North or Midlands.
It is no surprise that the attraction for leaving the capital is the ability to buy a bigger home with the average Londoner buying outside the capital spending circa £430,000 on their new home. Additionally, stamp duty has an impact, with the average bill for buying a detached home in the South being £14,780, compared to £5,358 in the North. From a career point of view, London might have lost its draw, but other areas of the country are starting to offer equivalent earning opportunities for the motivated, ambitious professional. It’s no wonder, therefore, the move can be an attractive one.
This is not solely a London centric migration either; buyers from other cities such as York and Newcastle are also cashing in on their urban pads and moving to the countryside.
With all this equity in their back pockets and a desire to trade up to a substantial family home, the Exodus generation are the higher net worth home owners of the present day and will seek financial planning to secure the funding for now and the future, as well as advice on suitable protection for this lifestyle change.
