Young professionals, fed up with the high cost of living in London, are leaving the capital in droves, or deciding against moving there after graduation, property experts report.
Johnny Morris, head of research for Hamptons International, says that in the past year there has been “frenzied activity” in the “edgier” areas south of the Thames and in the east such as Hackney, Dalston, Streatham and Peckham, which have been crowned some of the most fashionable places to live in the UK by The Times this week.
However, as prices in these areas rise in response to demand, twenty and thirtysomethings are house-hunting elsewhere. “A major driver of the market this year will be Londoners moving out of the capital, looking for a piece of the country idyll or somewhere a little bit more affordable, but still with a healthy dose of urban cool,” Morris says.
Lucian Cook, head of Savills UK residential research, agrees: “Wealthy young professionals are pioneering emerging prime locations away from their parents. Access to high-value employment markets and good transport links are key. Young professionals often cluster together, attracted to sociable communities with shops, restaurants and cafés close by.”
So where are they going? Here are five of the most popular spots.
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Birmingham
Britain’s second city attracted 5,480 Londoners in their thirties in the year to June 2013, more than anywhere else in the country, according to the Office for National Statistics. Last week Birmingham was ranked the best city in the UK after London for quality of life by Mercer, the global consultant. Criteria included “stable and attractive locations for businesses”, which translates into a variety of decent job opportunities for graduates. StartUp Britain says the city is becoming a new regional hub for small and medium-sized enterprises, or SMEs; 18,337 were launched last year, second only to the the capital.
Will Marshall-Murray, of Fine & Country Solihull, says the Jewellery Quarter, as well as nearby Digbeth, where you’ll find the converted Bird’s custard factory and the weekly street-food market Digbeth Dining Club, are particularly popular with young professionals “looking for a unique home”.
“The area is continuing to grow and thrive,” he says. Beautiful old factories and warehouses, many of which are listed, are being converted into new apartments to meet demand.
Manchester
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In a survey by Savills of regional areas with the highest proportion of households aged under 35 and in the top socio-economic group, Manchester city centre came top. The city is just behind Birmingham in the number of start-ups, with 13,054 being launched since January 2014. Many students there are choosing to stay on and get work locally, says Paul Robertson of the Jordan Fishwick estate agency. The Northern Quarter, home to record and vintage shops and more than 50 bars, is popular.
Rob Sumner, the Savills Manchester development director, says Didsbury and Chorlton are two of the most popular suburbs for newly arrived professionals. “Each offers a great selection of housing, from small terraced homes to large Victorian villas. They are well connected to the city by the new tramline, with vibrant village centres of their own. Another attraction is the strong jobs market, with major banks and law firms well represented in Manchester.”
Bristol
This is one of the UK’s greenest cities — residents use less energy per household than any other city, and it attracts a lot of young people and families who like the great outdoors. Devon and Cornwall are not far away, and, says Andrew Hughes of Chappell & Matthews in Bristol Harbourside, the city offers lots of sporting activities and watersports, as well as open spaces and parks.
Clifton, the oldest and priciest part of the city, came second in the Savills research as home to the greatest number of affluent under-35s. Richard Brooks, head of the agency’s Bristol office, says the district has a resilient market “with its own high street, bars, restaurants and local amenities, and also provides easy access to Bristol city centre”.
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For first-time buyers after apartments for £200,000 to £300,000, there are a number of new developments popping up within the city centre and waterfront. “An increasing number of investors who have previously bought in London are now also wanting to invest in property in Bristol,” Hughes says. “First-time buyers in the area tend to be people who have studied here, got jobs and then settled.”
Cambridge
“I have noticed the stream of buyers from London over the past two or three years,” says James Milner, senior valuer of TuckerGardner in Cambridge. “Many are moving here for work and see Cambridge as a more affordable place to buy their first home than the capital.”
The city is a burgeoning hub for bio-tech, life sciences and technology industries; AstraZeneca’s Global R&D Centre will open on the new Cambridge Biomedical Campus. Milner says Thoday Street, a ten-minute walk from the station, is popular. Chesterton, near the city centre, is close to the river and will soon have a railway station: Cambridge Science Park. “This is possibly one of Cambridge’s biggest growth areas.”
TuckerGardner is marketing a pretty three-storey, two-bedroom Victorian terraced house on Thoday Street, with a garden and shed, for £375,000.
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Brighton
Morris says Brighton is one of the top hotspots for Londoners wanting to stay in the southeast. It’s well connected to the capital — trains take 51 minutes — but has its “own distinct character”. The Lanes have the highest concentration of independent shops in the UK. Last week SuperB, a new development next to the station, launched 15 penthouses, starting from £499,950. Another Sussex location drawing young workers is Hastings, known as “Dalston-on-Sea” because of its popularity with London buyers. “It has a bohemian atmosphere and is a hub for artists and musicians who play in the local wine bars,” says Charlotte Bennetts, of Freeman Forman.