London is the buzzing capital which every career-driven individual and party-lover tends to opt for, but as a global cultural centre, it has become one of the most expensive cities to live in the world. While you may opt for a short-term loan in the event of a financial emergency, you may want to consider saving up a budget by opting to move somewhere cheaper. Here, we’re taking a closer look at whether or not you should move out of London in 2018.
How Expensive Is It To Live In London?
According to Expatistan, a resource for expats looking to move to different countries around the world, London is the 8th most expensive country to live in, in the world, sitting behind the likes of Zurich, New York City, Geneva, Reykjavik and Hamilton, amongst others. The same resource also suggests that the monthly rent for a 900 sqft furnished accommodation in a ‘normal’ area in London is approximately £1,714, and in an ‘expensive’ area, the same sized furnished property’s monthly rent will be approximately £2,386. With living expenses such as rent often being the biggest cut for almost any budget, the price to live in London is obviously very expensive.
UK House Price Growth Could Slow
With the uncertainties of Brexit, experts have forecasted that throughout 2018, the UK house price growth could slow by almost half. With mortgage constraints beginning to occur, and interest rate hikes set to dampen the market even further, the slowdown is likely to impact the market quite severely between 2018 and 2022. If you are a property owner in London, then it may not be the right time to sell up and move out. It’s important not to over-commit to the financial obligations of moving to London, as this could lead you requiring emergency loans to get you out of trouble. It’s important not to forget the costs of moving home, either.
The Impact Of Brexit On London
Interestingly, London remains a key location for business people and expatriates in spite of the uncertainty surrounding Brexit, and a recent report published for London Mayor Sadiq Khan also suggests that London’s economy will not be as severely impacted by Brexit as other areas of the UK will be. Even with a hard Brexit scenario, approximately 500,000 jobs are likely to be lost across the UK by 2030, although this was initially predicted to be up to 950,000 jobs. The capital, however, is likely to perform much better than many other regions in terms of retaining employment opportunities, due to the larger concentration of higher value industries, which will allow them to recover from the economic shock of Brexit much faster. Therefore, some people may consider staying in London throughout 2018, prior to Brexit occurring, in order to remain in a secure position in their role.
Other Key Growth Areas
There are a number of cities across the UK that have grown substantially in the last 12 months or so, with investment being put into infrastructure and job opportunities. Birmingham is a key location that is beginning to grow, with reports back in 2016 suggesting the city could eclipse London as the UK’s number one city. Other key cities which many individuals may consider moving to not only for career opportunities but also to enjoy a lower cost of living include Manchester, Bristol and Liverpool.
London, and the rest of the UK, is facing a number of uncertainties as a result of the political climate, but with key areas across the capital, and other cities in the country performing well economically, there are a number of reasons why people may want to leave or stay in London.