Real Estate Investor Magazine South Africa March 2013 | Page 63

OFFSHORE
Net outflows to the rest of Britain are half what
they were in 2005, partly because more people
have drifted into London. Net inf lows from
overseas, though declining, remain positive.
Since 2002, births in London have soared by
25 per cent each year, contributing to 37 per
cent of England’s natural population increase
(the surplus of births over deaths) between
2009 and 2010.
On current projections London’s population
will swell from just over 8 million now to
over 9million by 2031, which is roughly the
equivalent of adding the entire population of
Britain’s second city, Birmingham. The number
of London households is set to increase to 4.4
million over the same period. About 80 per cent
of this growth in household numbers will be in
single-person households.
This growth in population is being driven by,
among other things, an increase in life expectancy,
fertility rates, divorce rates and net migration
to the UK’s capital. So London is getting both
younger and older—but above all bigger.

The growing demand from
London tenants
These headline statistics point to continued
long-term population growth, which shows no
signs of dwindling, and which is increasing the
demand for properties in London.
Yet, restricted mortgage availability means
that entry into the housing market remains
difficult for those without the cash for a large
deposit. And, according to recent report from
the National Housing Federation, things are
not going to get any easier for young buyers
dreaming of their own home in London.
The Federation commissioned Oxford
Economics to forecast how long the average
21-year-old would have to wait until he or she
could afford a deposit of 20 per cent and to earn
enough money to qualify for a mortgage. Their
startling research puts the future average age
of first-time London buyers at 52 – but only if
they’ve not had any children and have sa