London's population declined for the first time in three decades in 2025, with a net outflow of 130,000 people, according to the Office for National Statistics. More than 400,000 Londoners reportedly moved to other parts of the country last year.
This population shift coincides with a downturn in the capital's property market. Westminster has seen a 23% drop in property prices over the past year, while Kensington and Chelsea experienced a 10% fall, and Hammersmith and Fulham a 7% fall. In real terms, prices are reportedly down 40% or more from their peak.
The economic challenges extend to retail, with Harvey Nichols, a prominent luxury store, reportedly put up for sale by its owner, Dickson Poon, due to ongoing losses. The latest data from HM Revenue & Customs also indicates that 1,200 non-doms were among those who left London.
London contributes over a fifth of the nation's output and accounts for 27% of income tax and 36% of corporation tax collected by the Treasury annually.