FOCUSONLONDON2011: HOUSING:AGROWINGCITY With the highest average incomes in the country but the least space to grow, demand for housing in London has long outstripped supply, resulting in higher housing costs and rising levels of overcrowding. The pressures of housing demand in London have grown in recent years, in part due to fewer people leaving London to buy homes in other regions. But while new supply during the recession held up better in London than in other regions, it needs to increase significantly in order to meet housing needs and reduce housing costs to more affordable levels. This edition of Focus on London authored by James Gleeson in the Housing Unit looks at housing trends in London, from the demand/supply imbalance to the consequences for affordability and housing need. PRESENTATION: How much pressure is London’s popularity putting on housing provision in the capital? This interactive presentation looks at the effect on housing pressure of demographic changes, and recent new housing supply, shown by trends in overcrowding and house prices. Click on the start button at the bottom of the slide to access. View Focus on London - Housing: A Growing City on Prezi FACTS: Some interesting facts from the data… ● Five boroughs with the highest proportion of households that have lived at their address for less than 12 months in 2009/10:

In the four weeks leading up to June 16, 2025, the housing market in the UK saw the stock of homes for sale increase by ** percent compared to the same period in 2024. New inventory, demand, and the number of agreed sales also increased, albeit at a lower rate.

North West England and the West Midlands had the largest mismatch between the supply and demand of housing in 2023. If the number of dwellings added to the housing stock continues being lower than the number of new households formed there would be a housing shortage. However, London showed some signs of having a housing shortage, as it had the largest difference between the homes built and the households formed between 2016 and 2023.

FOCUSON**LONDON**2011: HOUSING:A**GROWING**CITY

With the highest average incomes in the country but the least space to grow, demand for housing in London has long outstripped supply, resulting in higher housing costs and rising levels of overcrowding. The pressures of housing demand in London have grown in recent years, in part due to fewer people leaving London to buy homes in other regions. But while new supply during the recession held up better in London than in other regions, it needs to increase significantly in order to meet housing needs and reduce housing costs to more affordable levels.

This edition of Focus on London authored by James Gleeson in the Housing Unit looks at housing trends in London, from the demand/supply imbalance to the consequences for affordability and housing need.

REPORT:

Read the report in PDF format.

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PRESENTATION:

How much pressure is London’s popularity putting on housing provision in the capital? This interactive presentation looks at the effect on housing pressure of demographic changes, and recent new housing supply, shown by trends in overcrowding and house prices. Click on the start button at the bottom of the slide to access.

View Focus on London - Housing: A Growing City on Prezi

HISTOGRAM:

This histogram shows a selection of borough data and helps show areas that are similar to one another by each indicator.

Histogram

MOTION CHART:

This motion chart shows how the relationship, between key housing related indicators at borough level, changes over time.

Motion Chart

MAP:

These interactive borough maps help to geographically present a range of housing data within London, as well as presenting trend data where available.

MAP

DATA:

All the data contained within the Housing: A Growing City report as well as the data used to create the charts and maps can be accessed in this spreadsheet.

FACTS:

Some interesting facts from the data…

● Five boroughs with the highest proportion of households that have lived at their address for less than 12 months in 2009/10:

1. Westminster – 19 per cent
2. Wandsworth – 17 per cent
3. Camden – 16 per cent
4. Lambeth – 14 per cent
5. Southwark – 13 per cent

-31. Harrow – 6 per cent

-32. Havering – 5 per cent

● Five boroughs with the highest percentage point increase between 2004 and 2009 of households in the ‘private rented’ sector:

1. Newham – 17 per cent
2. Greenwich – 11 per cent
3. Enfield – 10 per cent
4. Camden – 9 per cent
5. Harrow – 8 per cent

-32. Islington – 1 per cent

-33. Bexley – 1 per cent

● Five boroughs with the highest percentage difference in median house prices between 2007 Q4 and 2010 Q4:

1. Kensington & Chelsea – 29 per cent
2. Westminster – 19 per cent
3. Camden – 15 per cent
4. Islington – 14 per cent
5. Southwark – 10 per cent

-31. Newham – down 9 per cent

-32. Barking & D’ham – down 9 per cent

Through reading this publication you will: • gain an understanding of how house prices are set in economics terms, how they are measured, and why the cost of housing matters for London’s economy and its residents • see whether incomes and earnings in London have kept pace with the costs of home ownership in London, and see how affordability may be affected by future changes in interest rates • find out about the drivers of demand for residential property in London, and how the supply of homes has responded to changing conditions

During the COVID-19 pandemic, the number of house sales in the UK spiked, followed by a period of decline. In 2023 and 2024, the housing market slowed notably, and in January 2025, transaction volumes fell to 46,774. House sales volumes are impacted by a number of factors, including mortgage rates, house prices, supply, demand, as well as the overall health of the market. The economic uncertainty and rising unemployment rates has also affected the homebuyer sentiment of Brits. How have UK house prices developed over the past 10 years? House prices in the UK have increased year-on-year since 2015, except for a brief period of decline in the second half of 2023 and the beginning of 2024. That is based on the 12-month percentage change of the UK house price index. At the peak of the housing boom in 2022, prices soared by nearly 14 percent. The decline that followed was mild, at under three percent. The cooling in the market was more pronounced in England and Wales, where the average house price declined in 2023. Conversely, growth in Scotland and Northern Ireland continued. What is the impact of mortgage rates on house sales? For a long period, mortgage rates were at record-low, allowing prospective homebuyers to take out a 10-year loan at a mortgage rate of less than three percent. In the last quarter of 2021, this period came to an end as the Bank of England rose the bank lending rate to contain the spike in inflation. Naturally, the higher borrowing costs affected consumer sentiment, urging many homebuyers to place their plans on hold and leading to a decline in sales.

After a very slow second quarter of 2020 due to the coronavirus (COVID-19) pandemic, the housing market in the United Kingdom (UK) experienced dramatic surge in home sales. In the first quarter of 2021, the residential property supply varied between *** and *** months of available stock for sale in different regions of the UK, and *** months in Inner London. Considering the limited supply and the spike in demand, house prices have been on an upward trend.

The UK residential real estate market, valued at £360.27 million in 2025, is projected to experience robust growth, driven by several key factors. A consistently strong CAGR of 5.75% indicates a healthy and expanding market over the forecast period (2025-2033). This growth is fueled by increasing urbanization, a growing population, and a persistent demand for housing, particularly in major cities like London. Furthermore, government initiatives aimed at boosting homeownership and infrastructure development contribute positively to market expansion. The market is segmented by property type, with apartments and condominiums, and landed houses and villas representing significant segments. Key players such as Bellway PLC, Barratt Developments PLC, and Berkeley Group dominate the market, while a competitive landscape also includes numerous smaller developers and housing associations. While rising interest rates and construction costs present challenges, the overall outlook remains positive due to the enduring demand and limited housing supply, particularly in desirable areas. However, several factors could influence the market's trajectory. Fluctuations in the national economy, changes in government regulations concerning mortgages and property taxation, and global economic uncertainty could impact buyer confidence and investment. Regional variations also exist, with market dynamics differing across England, Scotland, Wales, and Northern Ireland. Understanding these regional nuances is crucial for targeted investment strategies. The market's resilience will depend on the ability of developers to adapt to changing market conditions and meet evolving consumer preferences for sustainable and energy-efficient housing. The continuous evolution of consumer preferences towards specific types of housing and location preferences will further shape the market's future growth. Recent developments include: May 2023: A UAE-based investment manager, Rasmala Investment Bank, has launched a USD 2bn ( €1.8bn) UK multifamily strategy for a five-year period to build a USD 2bn portfolio of UK residential properties. The strategy is focused on the UK market for multifamily properties through a Shariah-compliant investment vehicle, initially targeting the serviced apartment (SAP) and BTR (build-to-rent) subsectors within and around London. Seeded by Rasmala Group, the strategy is backed by an active investment pipeline for the next 12 – 18 months., November 2022: ValuStrat, a Middle East consulting company, increased its foothold in the UK by acquiring an interest in Capital Value Surveyors, a real estate advisory services company with offices in London. The UK continues to be one of the most established real estate markets worldwide and attracts foreign investors regularly. They are excited to expand their presence there to better serve all of their clients, both in the UK and the Middle East.. Key drivers for this market are: Demand for New Dwellings Units, Government Initiatives are driving the market. Potential restraints include: Demand for New Dwellings Units, Government Initiatives are driving the market. Notable trends are: Increasing in the United Kingdom House Prices.

About 36 percent of homeowners in England were aged 65 and above, which contrasts sharply with younger age groups, particularly those under 35. Young adults between 25 and 35, made up 15 percent of homeowners and had a dramatically lower homeownership rate. The disparity highlights the growing challenges faced by younger generations in entering the property market, a trend that has significant implications for wealth distribution and social mobility. Barriers to homeownership for young adults The path to homeownership has become increasingly difficult for young adults in the UK. A 2023 survey revealed that mortgage affordability was the greatest obstacle to property purchase. This represents a 39 percent increase from 2021, reflecting the impact of rising house prices and mortgage rates. Despite these challenges, one in three young adults still aspire to get on the property ladder as soon as possible, though many have put their plans on hold. The need for additional financial support from family, friends, and lenders has become more prevalent, with one in five young adults acknowledging this necessity. Regional disparities and housing supply The housing market in England faces regional challenges, with North West England and the West Midlands experiencing the largest mismatch between housing supply and demand in 2023. This imbalance is evident in the discrepancy between new homes added to the housing stock and the number of new households formed. London, despite showing signs of housing shortage, has seen the largest difference between homes built and households formed. The construction of new homes has been volatile, with a significant drop in 2020, a rebound in 2021 and a gradual decline until 2024.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in June 2025, prices reached a new peak, with the average home costing ******* British pounds. This figure refers to all property types, including detached, semi-detached, terraced houses, and flats and maisonettes. Compared to other European countries, the UK had some of the highest house prices. How have UK house prices increased over the last 10 years? Property prices have risen dramatically over the past decade. According to the UK house price index, the average house price has grown by over ** percent since 2015. This price development has led to the gap between the cost of buying and renting a property to close. In 2023, buying a three-bedroom house in the UK was no longer more affordable than renting one. Consequently, Brits have become more likely to rent longer and push off making a house purchase until they have saved up enough for a down payment and achieved the financial stability required to make the step. What caused the recent fluctuations in house prices? House prices are affected by multiple factors, such as mortgage rates, supply, and demand on the market. For nearly a decade, the UK experienced uninterrupted house price growth as a result of strong demand and a chronic undersupply. Homebuyers who purchased a property at the peak of the housing boom in July 2022 paid ** percent more compared to what they would have paid a year before. Additionally, 2022 saw the most dramatic increase in mortgage rates in recent history. Between December 2021 and December 2022, the **-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

Geneva stands out as Europe's most expensive city for apartment purchases in early 2025, with prices reaching a staggering 15,720 euros per square meter. This Swiss city's real estate market dwarfs even high-cost locations like Zurich and London, highlighting the extreme disparities in housing affordability across the continent. The stark contrast between Geneva and more affordable cities like Nantes, France, where the price was 3,700 euros per square meter, underscores the complex factors influencing urban property markets in Europe. Rental market dynamics and affordability challenges While purchase prices vary widely, rental markets across Europe also show significant differences. London maintained its position as the continent's priciest city for apartment rentals in 2023, with the average monthly costs for a rental apartment amounting to 36.1 euros per square meter. This figure is double the rent in Lisbon, Portugal or Madrid, Spain, and substantially higher than in other major capitals like Paris and Berlin. The disparity in rental costs reflects broader economic trends, housing policies, and the intricate balance of supply and demand in urban centers. Economic factors influencing housing costs The European housing market is influenced by various economic factors, including inflation and energy costs. As of April 2025, the European Union's inflation rate stood at 2.4 percent, with significant variations among member states. Romania experienced the highest inflation at 4.9 percent, while France and Cyprus maintained lower rates. These economic pressures, coupled with rising energy costs, contribute to the overall cost of living and housing affordability across Europe. The volatility in electricity prices, particularly in countries like Italy where rates are projected to reach 153.83 euros per megawatt hour by February 2025, further impacts housing-related expenses for both homeowners and renters.

UK Residential Real Estate Market size is growing at a moderate pace with substantial growth rates over the last few years and is estimated that the market will grow significantly in the forecasted period i.e. 2024 to 2031.

The UK residential real estate market is driven by robust demand for housing, especially in major cities like London, Manchester, and Birmingham. The UK government’s housing strategy aims to deliver 300,000 new homes annually to meet demand, which continues to outpace supply. With an increasing population and changing demographics, including more people opting for homeownership, demand for residential properties remains high. The need for family homes and affordable housing continues to drive growth in both urban and suburban markets.

Moreover, government initiatives such as the Help to Buy scheme and Stamp Duty cuts have played a significant role in encouraging first-time buyers to enter the residential market. Recent changes to Stamp Duty, which saw exemptions for homes below a certain price threshold, have increased affordability for many buyers. The government’s First Homes Scheme offers new properties at a discounted rate for first-time buyers, making homeownership more accessible. According to the UK Ministry of Housing, Communities, and Local Government, the scheme has helped thousands of young buyers get onto the property ladder.

Amsterdam is set to maintain its position as Europe's most expensive city for apartment rentals in 2025, with median costs reaching 2,500 euros per month for a furnished unit. This figure is double the rent in Prague and significantly higher than other major European capitals like Paris, Berlin, and Madrid. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Factors driving rental costs across Europe The disparity in rental prices across European cities can be attributed to various factors. In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing. This trend contributes to increased demand and potentially higher living costs in these nations. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90 percent, which may help keep rental prices lower in those regions. Housing affordability and market dynamics The relationship between housing prices and rental rates varies significantly across Europe. As of 2024, countries like Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio indices. This indicates a widening gap between property values and rental costs since 2015. The affordability of homeownership versus renting differs greatly among European nations, with some countries experiencing rapid increases in property values that outpace rental growth. These market dynamics influence rental costs and contribute to the diverse rental landscape observed across European cities.

This dataset contains the data used in the study titled “Is hiding my first name enough? Using behavioural interventions to mitigate racial and gender discrimination in the rental housing market”. The data was collected from the London rental housing market between 2021 and 2022. Racial and gender biases are pervasive in housing markets. Males and ethnic minorities face discrimination in rental housing markets globally. The issue has been so pronounced that it regularly makes national and international headlines. In response to a racial discrimination lawsuit, Airbnb had to hide guests’ first names from rental hosts in Oregon, USA, starting in January 2022. Yet, there is little evidence that such measurement effectively counteracts racial and gender discrimination in housing markets.

Despite some well-established theoretical models developed more than half a century ago and a wealth of empirical evidence accumulated over the last two decades, studies examining effective solutions to combat discrimination remain sparse especially in housing markets. Given the complexity of the products and services involved and the relatively low frequency of transactions, nuanced studies are needed to understand how implicit racial and gender biases influence letting decisions.

This study investigates housing discrimination at the intersection where longstanding market behaviours meet the evolving insights of behavioural research. Although behavioural interventions have the potential to address both statistical and taste-based discrimination in the housing market, their successful implementation remains a challenge. Given the persistent biases and socio-economic dynamics in the housing market, interventions must be carefully tailored to the context.

By collecting evidence from field experiments, this research aims to gain insights into how real-world behavioural interventions can be effectively designed and implemented. Our focus remains twofold: to develop a robust theoretical framework and to translate its insights into tangible, impactful policy recommendations, with the ultimate goal of fostering a more inclusive housing market.

Although China has almost eliminated urban poverty, the total number of Chinese citizens in poverty remains at 82 million, most of which are rural residents. The development of rural finance is essential to preventing the country from undergoing further polarization because of the significant potential of such development to facilitate resource interflows between rural and urban markets and to support sustainable development in the agricultural sector. However, rural finance is the weakest point in China's financial systems. Rural households are more constrained than their urban counterparts in terms of financial product availability, consumer protection, and asset accumulation. The development of the rural financial system faces resistance from both the demand and the supply sides.

The proposed project addresses this challenge by investigating the applications of a proven behavioural approach, namely, Libertarian Paternalism, in the development of rural financial systems in China. This approach promotes choice architectures to nudge people into optimal decisions without interfering with the freedom of choice. It has been rigorously tested and warmly received in the UK public policy domain. This approach also fits the political and cultural background in China, in which the central government needs to maintain a firm control over financial systems as the general public increasingly demands more freedom.

Existing behavioural studies have been heavily reliant on laboratory experiments. Although the use of field studies has been increasing, empirical evidence from the developing world is limited. Meanwhile, the applications of behavioural insights in rural economic development in China remains an uncharted territory. Rural finance studies on the household level are limited; evidence on the role of psychological and social factors in rural households' financial decisions is scarce. The proposed project will bridge this gap in the literature.

Comprehensive analysis of UK construction output, planning approvals, and London housing delivery crisis with implications for development finance

The UK commercial real estate market, valued at approximately £149.67 billion in 2025, is projected to experience steady growth, driven by factors such as increasing urbanization, robust economic activity in key sectors, and ongoing investment in infrastructure projects. The market's Compound Annual Growth Rate (CAGR) of 4.31% from 2025 to 2033 indicates a positive outlook, although growth may fluctuate depending on macroeconomic conditions and interest rate changes. The office sector, while facing challenges from remote work trends, remains a significant segment, particularly in major cities like London. The retail sector is undergoing transformation, with a shift towards experience-led retail and e-commerce fulfillment centers driving demand. The industrial and logistics sector continues to thrive, fueled by the growth of e-commerce and supply chain optimization. The hospitality sector’s recovery post-pandemic is expected to contribute to market growth, although uncertainties remain. Investment is likely to focus on sustainable and technologically advanced properties, aligning with broader ESG (Environmental, Social, and Governance) considerations. Within the UK, regional variations are expected. London and other major cities will continue to attract significant investment, while regional markets will demonstrate varying levels of growth depending on local economic conditions and infrastructure developments. Competition among established players like Hammerson, Land Securities Group PLC, and British Land, alongside emerging players, will likely intensify. The sector is also subject to regulatory changes and external factors like inflation and geopolitical events, which will influence investment decisions and overall market performance. Technological advancements, such as proptech solutions and data analytics, will further reshape the industry's landscape, impacting operations, asset management, and tenant relationships. This evolving market presents both opportunities and challenges for investors, developers, and businesses operating within the UK commercial real estate sector. Recent developments include: October 2023: British Land received a resolution to grant planning permission for an approximately 140,000 sq. ft multi-level last-mile logistics scheme on Mandela Way, Southwark. This project represents the latest addition to British Land’s 2.9 million sq. ft pipeline. Situated near the junction of New Kent Road, Old Kent Road, and Tower Bridge Road, the site will serve as a last-mile logistics hub for Southwark and central London., July 2023: British Land and Landsec formulated a comprehensive set of recommendations aimed at regenerating UK towns and cities. Their goal is to stimulate more growth, create additional homes, and generate more job opportunities by enhancing how the planning system supports brownfield regeneration. As major players behind some of Britain’s most significant regeneration projects, including Landsec’s 24-acre Mayfield neighborhood in central Manchester and British Land and AustralianSuper’s 53-acre Canada Water development in London, these property companies bring extensive experience in large-scale, complex urban developments. The insights gained from such projects have been applied and refined in their latest paper.. Key drivers for this market are: Growth in the Country's Logistics Sector and Warehouse Space, Increasing Demand for Co-working Office Spaces; Increasing Infrastructure Investments. Potential restraints include: Rising Costs affecting the market. Notable trends are: Office Segment Showing Significant Growth in the Market.