Thousands of people are leaving London each year as more young people are attracted to major cities in the Midlands and the North.
Data from the Office for National Statistics showed that between mid-2016 and mid-2017 more than 100,000 people left London to live elsewhere in the UK.
Research by buy-to-let mortgage market analysts Landbay suggests that these statistics stem from rising rent costs in London and major investment in cities such as Birmingham, Manchester and Leeds.This is backed up by rent growth in these areas which, according to Landbay, are far outstripping the Capital.
John Goodall, CEO of Landbay, said: “The truth is there is now a twin speed rental market as London’s rent growth is dwarfed by cities such as Leeds and Manchester.
“This is being fuelled by the Capital’s millennial exodus as countless young professionals realise there is more to life than London.
“In many ways it could be argued that the ‘Northern Powerhouse’ is beginning to take effect amid stretched affordability and a harsher tax regime.”
In Barnet just under 4,000 people left the borough and in Enfield this figure was over 5,000 between mid-2016 and mid-2017. In Haringey it was even higher at just over 6,600 in the same period.
Analysis from City Hall earlier this year found renters in London need to find nearly £3,700 each time they move home, compared with the nationwide average of £2,000, with Mayor of London Sadiq Khan coming under increasing pressure to provide more affordable housing in the Capital.
In 2017, 34% of homes built in the Capital were classed as affordable, rising to 38% in 2018. In his housing strategy, Mr Khan has a target of making sure that 50% of all new homes built are affordable.
But he also pointed out that to meet housing targets of building at least 66,000 new homes in the Capital he would need £27billion from the government.
Mr Khan said: “That is four times more than we currently receive. To fix the housing crisis the government needs to give us more money and powers.
“The housing crisis is a result of a refusal to act for decades.”