UK Demographics

The UK population is projected to increase from some 55 million in 1975 to 60+ million by 2020, mainly through people living longer. Much of this population growth is in the south-east of England.

Even if the birth rate in the UK has slowed slightly in past years, people are living far longer than previously mainly due to improved health care, working conditions and less pollution. If this trend is continues, you could expect to see average age rises and hence the population grow even higher.

Another important trend is immigration – these families tend to have more children when they settle and hence support population growth. This general demographic situation is well known, fairly deterministic and should help support house prices and demand for property in the longer term. On a smaller scale it would be expected that the following demographic trends on a UK regional level:

As baby boomers retire, they will move out of city suburbs to be close to the sea or in leisure areas such as national parks, though most will try and stay close to their families and friends
Continued strong economic activity in the major service centres will lead to increasing populations and wealth e.g. London, Manchester, and Liverpool.
City centre living will become more popular as amenities and cultural activities improve for both young and elderly people – many commuters will become tired of long daily commutes and have two properties – one in the country, one in the city.

So accordingly there will be a shift of low earning rural people to the cities/suburbs, with wealthier city folk moving up the property investment ladder. There will be a considerable increase in demand for homes (whether permanent or second homes) with sea/coastal views as the baby boomers retire starting in 2004 (the oldest baby boomer is now 58 years old) and continuing for the next 20 years.

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