With vastly more job and cultural opportunities, megacities continue attracting people from all over the world. Since the beginning of the 1980s, the population of London has increased by more than 2 million inhabitants and in the next 20 years, it is forecast to increase by almost 1.5 million.
Demand for housing and house prices
The growing population inevitably leads to rising housing demand and prices. In August 2023, the average price of a house in Haringey, the ninth most expensive borough, increased by nearly six percent. That was the borough with the strongest house price growth in that year. On the other hand, Kensington and Chelsea (the capital's priciest borough) saw prices decline by 10 percent - a result of the market cooling.
Residential properties transactions
Since 2006, the number of residential property sales has varied between 1.7 million and 0.8 million transactions annually. The housing boom in 2021 led to an increase in home purchases, but the economic uncertainty, stubborn inflation, and dramatically higher interest rates have led to transactions falling.