Now London is a big place to live in. Even if you can find somewhere to live... this looks nice...
It's not just about finding somewhere to live, but finding somewhere you can afford to live. For the last 10 years house prices in London have been on an unparalleled run of growth. But there are signs that that is now beginning to change. Foxtons, the London focused estate agency, recently reported a two-thirds drop in its profits for the year 2017 as it struggled to deal with London's slowing housing market.
Some of the uncertainty around Brexit, the expectation that interest rates are going to rise at some point, and as a result house prices are currently in very low, single-digit house price growth, or if you were too look at the nationwide, in slight negative territory.
If you take the London property market as a whole, it really is driven by first-time buyers and those people trading up the housing latter. That is the bulk of the market. The people who are most stretched, that tends to be the first-time buyer. So real difficulty in being able to access a deposit to enable you to get on the housing ladder.
In addition to that, you have some equity investors, buy to let, where the mortgage in London has become a difficult market just in terms of being able to make a profit when you think of the fact that there's some restricted tax relief on your interest payments going forward.
According to Maleo, a data consultancy, developers have been building more of luxury apartments than they can sell.
The top end of the market, that's really been affected by high levels of stamp duty, at the top end of the market. And indeed, a wider change in the tax environment for those overseas buyers in terms of their exposure to capital gains tax and inheritance tax.