London's population shrinks as residents seek lower costs and remote work

London's population has fallen for the first time in decades, excluding the temporary dip during the COVID-19 pandemic, with new estimates showing a decrease of nearly 27,000 people to 9.1 million by mid-2025. This marks the only region in England to experience population decline in the past year, reversing a trend of growth seen in the three years following the pandemic lockdowns. Historical data suggests this is the first population decrease since 1988, outside of the pandemic period.

The decline is particularly pronounced in the southern boroughs of Southwark and Lambeth, followed by Camden and Westminster. Experts attribute this exodus to a combination of high living costs and the sustained adoption of remote work. This allows individuals to potentially retain London salaries while escaping the city's expensive housing market. Net migration to Britain has also significantly decreased, falling to 171,000 by the end of 2025 from a peak of 944,000 in the year ending March 2023.

"A range of factors have increased the cost of living in London, reduced the benefits of being in London, made it harder to move to London, and reduced employers' demand for staff on site," explained Liam Sides, deputy director at Oxford Economics. He cited lower immigration, a weaker job market for graduates, and declining earnings from employment as contributing factors. The net outflow was most significant among people in their thirties and forties, especially families with children, with popular destinations including Buckinghamshire, Birmingham, Scotland, Essex, Brighton, and Bristol.

Conversely, London continues to see net inward migration among 20- to 29-year-olds, reflecting the city's enduring appeal for its cultural offerings and early-career opportunities. A spokesperson for London's Mayor Sadiq Khan pointed to lower birth rates, high housing costs, the impact of the inflation crisis, and changed work and life habits post-pandemic as reasons for the decline. The spokesperson stated that efforts are underway to maintain London's affordability and attractiveness for all age groups.