London residents hike spending on housing outside the city

London residents spent the highest in a single year on housing outside the city in 2021, as people sought more living space during the coronavirus pandemic, the FT reported, citing an analysis of official data. 

The 54.9 billion pound ($73.5 billion) tally beat the previous record of 36.6 billion pounds ($49 billion) set in 2007, even as the total number of transactions fell short at 112,780. The study by estate agent Hamptons used data from HM Revenue & Customs.

As the coronavirus pandemic led to a sharp rise homeworking, many have chosen to abandon the city for commuter towns where larger homes with gardens are more affordable. Three quarters of those leaving remained within easy commuting distance, the FT reported.

The higher outflows combined with a post-Brexit reduction in immigration could slow decades of population growth in London, Hamptons said.