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The City of London provides employment for approximately 400,000 employees. With the furlough scheme now lifted and employment levels stabilised, London’s unemployment rate has dropped to 3.7% as of January 2023. Compared with the rise in 2021, the unemployment rate is forecast to drop further over the next few years.

London's favourable economic climate has resulted in households becoming significantly wealthier, with disposable incomes rising. By 2035, disposable incomes are forecast to reach £113,840, a remarkable increase of 203% since 2000. London has been classified as the ‘World City’ for High-Net-Worth and Ultra-High-Net-Worth Individuals and is currently ranked 7th in the world for the number of billionaire residents.

The number of households in the upper-income band continues to grow and is expected to reach over 2 million by 2035, an increase of 303% since 2010. This correlates to residents being able to afford higher rents and higher mortgage rates and why the demand for property in London continued despite economic headwinds in 2022, particularly in prime central London. Sales of £5m+ properties reached their highest number for the first nine months of any year since records began in 2006, according to Savills. Prime property continues to drum up interest among the wealthiest residents and international investors seeking to have a base in the financial capital of Europe, with a predicted forecast of 13.5% growth over the next 5 years in central London.

London is by far the most populous city in Western Europe, at least twice the size of Berlin and quadruple the size of Paris. With an average growth of 70,537 new residents per annum over the last 10 years alone, London’s population drives a strong demand for housing. There is, however, a consistent undersupply of housing across the capital city and not just in the city centre. With the population forecasted to rise a further 11% over the next five years, London may be encountering a housing crisis as it struggles to keep up with supply.

London continues to maximise the potential of every available space within the city. Regeneration projects within Greater London list among the most ambitious in the country. In addition to the HS2 that will shorten the distance between London and the rest of the country, the Elizabeth line project connected many hard-to-reach London locations driving up property values upon opening in 2022. The Elizabeth Line is Europe’s largest construction project, with 42 km of new tunnels and 10 new stations. The tube line broadens the boundaries, linking Reading, Maidenhead, Slough, Romford and Shenfield to the city centre.

The Battersea Power Station project is a thoughtful refurbishment of the old power station, which was operational between the 1930s and 1980s. The £9bn project will see the creation of a vibrant, mixed-use development, a new neighbourhood and business quarter for London, serviced by a Zone 1 extension to the London Underground Northern Line and the restoration of the Grade II* listed Power Station, which most recently opened in 2022.
The overall project is divided into eight phases, with each designed by a range of specialist architects. These include SimpsonHaugh and Partners and De Rijke Marsh Morgan (dRMM) in Circus West Village (Phase 1), WilkinsonEyre in Battersea Power Station (Phase 2), and Foster + Partners and Gehry Partners in The Electric Boulevard, Battersea Roof Gardens and Prospect Place, (Phase 3).

As of 2019, there were 382,000 Higher Education students studying and living in the city. London has over 40 universities and other higher education institutions (HE), including four of the world’s most prestigious and highly ranked universities, LSE (London School of Economics), Imperial College, UCL (University of the City of London) and King’s College. A recent UCAS survey shows that 70% of final-year students plan to stay in the capital after graduation. With the highest graduation retention rate in the UK, London has a vastly talented and educated population of young professionals all seeking to rent and work in the city.

London has one of the highest concentrations of the 20-29 age group in Europe, resulting in a very healthy rental market. According to Savills, despite the high cost of average rent per month in London compared to the other major cities, rents are forecasted to rise by 31.9% in the cumulative 2022-2026 period.

London’s economy has grown over 126% over the last twenty years, outperforming its fellow Alpha ++ city, New York. The combined assets from London-based firms equate to approximately GBP 8.5 trillion, cementing London’s position as a global powerhouse in finance and investment.

The city is home to the world’s fastest-growing scale-up cluster, seeing a boom of new digital, tech and creative industries setting up their headquarters in the capital city. With a hive of talented and educated workers, businesses continue to grow and thrive. London’s economy is expected to grow by a further 92% and reach GBP 954 billion by 2035. The city also boasts the highest GDP per capita among European cities (a representation of the standard of living) and is expected to see a total increase of 214% between 2000 and 2035.