Recent research from the Resolution Foundation has shown that services now account for a record share of Britain’s total exports – with London by far the biggest driver of the boom.
Recent research from the Resolution Foundation has shown that services now account for a record share of Britain’s total exports – with London by far the biggest driver of the boom. Services sectors accounted for 56% of exports in the third quarter of 2023, compared with just 30% in 1997.
Emily Fry, an economist at the Resolution Foundation, said services exports were one of Britain’s “secret economic success stories”, but added that “major cities outside London have failed to share in this growth”.
"London’s services exports grew by 47% from 2016 to 2021, more than double the UK average rate"
Services exports from the capital grew 47% to £152.2 billion between 2016 and 2021 – more than double the UK average rate. London’s strong export performance was broad-based and no longer heavily reliant on the financial sector, the research remarked. The capital’s information and communication services exports rose by an average of 15% per year between 2016 and 2021, while professional services grew 12% per year. Exports of financial services grew by 8% per year.
Separate ONS figures have shown that the capital’s economy has been growing faster than other parts of the country since the Covid pandemic, widening the income gap between Londoners and the rest of the country. This kind of data demonstrates why London remains such a desirable place to live and work for well-paid professionals from a variety of industries and why its property commands such a premium, with average house prices in the capital sitting at twice the national average.
November marked the fifth consecutive monthly UK house price rise and the biggest leap so far this year, according to Halifax. The mortgage lender said property values were up 1.3% compared with October.
We expect positive price growth this year – in a climate of falling mortgage rates, improving affordability and the release of some pent-up demand. Rightmove reported that first-time buyer demand in the capital in September 2024 was 28% ahead of 2023, moving up to 31% after the autumn budget.
International property company JLL has said it expects Greater London house prices to increase by 22% over the next 5-years, beating nationwide UK growth predictions of 20% over the same time span. The firm added that within those headline figures, it expected lower value markets to see stronger growth towards the beginning of the period, with more expensive markets like London and the South East outperforming in the second half.