Working From Home: Future Trends For London Property

As restrictions ease in the UK, there’s a lot of talk around hybrid working. If work-from-home (WFH) is continuing into our post-pandemic work lives, how will this affect what we want from the homes in which we work? And by consequence, how will this impact the property market? 

Post-Pandemic Work Culture

In a report from Microsoft Surface, 56 per cent of people have reported an increased level of happiness working from home, and businesses are listening. It seems that the “new normal” (sorry for the Covid cliché) will be two or three days working from home, with large corporations beginning to offer this as part of a post-pandemic strategy. HSBC is planning to move more than a thousand employees to permanent WFH contracts and PwC has announced flexible working as its new normal

All evidence points towards a sustained culture of remote working, meaning the property trends we saw over the past year (more indoor space, gardens, balconies, for example) are likely to remain. However, with restrictions easing, there are also those who desire accommodation in the centre of the will-be-action, which will make it an interesting few years watching how areas of London thrive or dive as the property market fluctuates with trends rooted in both work and play.

Still Demand for Outdoor Space?

Commuting into London three or four days a week from more rural areas is nothing new. Prioritising lifestyle over proximity to the office has long been the driver of property demand in areas outside of Central London. Leafy suburban areas with open space and good transport links are an obvious choice to accompany WFH trends, allowing people to essentially choose their workspace and everything that comes with it. Greenwich, for example, is an area we have particularly identified as an upcoming WFH magnet where buyers can take advantage of the value for money on bigger properties. Its village lifestyle and open spaces are balanced with easy access to Central London vía a variety of transport links, yet property prices have remained affordable - sparkling new three-bedroom apartments can be found for as little as £750k. Foreign investment is transforming Zone 2’s Greenwich peninsula into a stunning riverside district: Hong Kong tycoon Henry Cheng is funding a project to regenerate what was mostly an industrial gasworks area, and with Jubilee line trains linking the area to Canary Wharf in a single stop, both office-goers and work-from-home-ers are flocking to the new-builds that continue to pop up amidst cultural spaces, restaurants and other lifestyle amenities.

What Does the Younger Generation Want?

Working in the office five days a week is fast becoming an old-school mentality and, as the younger generations take the reins, it’s likely that over the next ten years it will become unusual for people to spend their full week in the office. There’s a whole generation of young employees who have spent more time working in a pandemic than out of one. The last 14 months of quarantine, WFH and lockdown restrictions are enough to question what you want and need from a home and workspace. But it is also this younger generation who are craving the return of a sociable citylife in London. What we are likely to see over the coming years is a rising demand for residential areas like Greenwich and Stratford that find a balance between the action of Central London and a suburban community lifestyle that facilitates a life working from home.

What’s the Forecast?

With the extension of the stamp duty holiday and easing of restrictions, the London property market has seen a flurry of activity, with UK house prices surging more than in seventeen years. The boost in confidence is pushing buyer demand but, as I outline in my previous blog, it’s crucial to take any buyer booms with a pinch of salt while we navigate our way through the post-pandemic era. It will be an interesting and uncertain time, most likely underpinned by trends influenced by the younger generations who are chomping at the bit for a restored balance between work, life and home.