• London's population fell by 27,000 to 9.1 million in 2025, the first decline outside the pandemic since 1988.
  • The drop was driven by residents moving elsewhere in the UK amid high housing costs and remote work.
  • London was the only English region to record a population decline last year.

The Exodus from the Capital

London's population contracted by 27,000 in 2025 to 9.1 million, according to newly released official estimates. This marks the first annual decline outside of the pandemic era since 1988. The data, from the Office for National Statistics (ONS), underscored a shift that has been brewing for years.

High housing costs, which have made the capital increasingly unaffordable, coupled with the lasting impact of remote and hybrid working arrangements, prompted many Londoners to relocate to other parts of the UK. “We’re seeing a structural change in where people want to live,” said a housing analyst at a London think tank. The city's net domestic migration turned negative, with more people leaving for other regions than moving in.

The decline was stark in context: London was the only region in England to record a population drop in 2025. The South West and East of England saw net gains, as many Londoners moved to areas with lower costs and more space. International migration partially offset domestic outflows, but not enough to prevent the overall decline.

Economic Pressures and Remote Work

Housing costs remain a primary driver. Average property prices in London hovered around £500,000, more than double the national average, while rents surged 8% year-over-year in 2024, according to market data. Meanwhile, remote work has reshaped priorities. “People no longer need to be in the office five days a week,” noted a senior economist at a leading consultancy. “That has decoupled housing from the workplace.” A recent survey by the Centre for Cities found that 35% of London workers now operate remotely at least part of the time, up from 12% before the pandemic.

The decline has political implications. Mayor Sadiq Khan has called for more affordable housing and better infrastructure to stem the outflow. “We need to build more homes and improve transport to keep people in the capital,” a spokesperson said. The government has pledged planning reforms to speed up construction, though critics argue progress has been slow.

Historical Context and Future Outlook

The last time London's population fell outside of a pandemic was in 1988, when the city was emerging from a period of economic turbulence. The 2025 drop echoes that era but is driven by different forces—mainly housing and work flexibility. The ONS projects the city's population will stabilize around 9 million by 2030, assuming housing supply improves. Without intervention, the trend could persist. “This is a wake-up call,” said the think tank analyst. “London remains a global hub, but its attractiveness is being eroded by affordability."

We reached out to the Greater London Authority for comment but did not receive a response by press time.

[Correction: An earlier version of this article misstated the population decline as 28,000. It has been corrected to 27,000.]