Capital Gains? A study of LondonersThrivers, survivors and outsiders

10th July 2014

Special thanks to…

And all those who gave up their time to speak to us in the early stages of the project.

What we did…London

Survey of 1,000 adults living in

London

Focus groups with: young graduates in

central London; middle class

homeowners; and working class outer

Londoners

Analysis of rare historical survey

data from 1970s and 1980s

Outside London

Survey of 1,745 UK adults living outside

London

Focus group with young graduates

living in York

Scoping interviews and roundtables with

key experts and decision-makers

London is different

What we found…

From the rest of the country

And from the London of the ’70s and ‘80s

And Londoners are different, too

“I love living in London – I can do what I want, when I want.”

Ric, ‘Thriver’

“No-one has time to relax, everyone has to

meet deadlines... It’s like being on one big

treadmill.”Hannah, ‘Survivor’

“I don’t go to London any more. I can’t stand the

place.”Jackie, ‘Outsider’

In many ways, London is better

London is more exciting…

34%

of Londoners say they are never bored in

London

“I’m proud of our reputation abroad. People get excited about London wherever you go in the

world.”Survivor, London

84%50%

LondonersNon-Londoners

There are enough opportunities for

entertainment, events and cultural attractions in

London/my local area to keep me happy

Living in London is exciting

2014: 79%

1977: 41%

London offers more opportunities…

74%

of Londoners say London is a good place to set up a business

66%38%

LondonersNon-Londoners

I feel like there are opportunities for me to be successful in London/my local

area

“Everyone knows London

is the best place for jobs, it’s growing at such a rapid

rate.”Survivor,

London

London is more tolerant and accepting…

76%

59%

LondonersNon-Londoners

London/my local area is a place where you are accepted

no matter what your race, religion, sexuality, age and

appearance is

“York isn’t a very tolerant place, it’s more socially acceptable to be racist. I think in London, you get judged

less.”Young graduate, York

“Because it’s so multicultural and diverse, with all these

different people and cultures,

it’s really buzzy and exciting.”

Outsider, London

Local life in London – and public services in particular – are improving…

73%of Londoners would be happy to be treated at their local hospital

38%23%

LondonersNon-Londoners

My local area is better now than it was 3 years ago

52%

of Londoners with children say that the quality of schools near them have improved in recent years

And crime is less of a concern…

In 1987, Londoners thought that crime

was the worst thing about living

in London

In 2014, crime ranks as only the

6th worst thing about life in

London

I have been prevented from

going out at night by the

threat of attack37%

“I know that there is crime in my

area, I’ve had my moped stolen. But I never feel scared or like my area is

dangerous.”Survivor, London

In 1987:

(Although perceptions of the most dangerous areas in London haven’t changed much…)

In 1987, Londoners thought that the most dangerous part of London was Brixton, followed by Soho and Hackney

In 2014, Londoners think that the most dangerous parts of London are:

In other ways, London fares worse

London is expensive…Worst things

about living in London:

“I think it’s run for the rich and the upper middle class. It’s not run for the heart of London, for the people that

make it tick.” Thriver, London

75%

say there are a lot of things that I would like to do in London but can’t afford to

77%

think London is becoming a place for the superrich while people on normal incomes are being squeezed out

London has a housing problem…

71%

of renters think they will never be able to afford to buy their own home in London

82%of Londoners think

that there is a significant shortage of housing in their

area

“You want to buy a house because it feels like progress and because you don’t have to worry about getting kicked out by a landlord. But I’ll probably have to move out of London

before I can buy somewhere in London.”Survivor, London

For Londoners in 2014, the most

sought after improvement to

their local area is housing that is more affordable

(Londoners have clear preferences for where they do and don’t want to live)

The part of London I’d least like to live in:

The part of London I’d most like to live in:

London feels overcrowded…

Worst things about living in London:

47%31

%

LondonersNon-Londoners

There are too many people living in my

area

“There’s just too many people

wherever you go. And it’s not just Central London, it’s round here

too.”Outsider, London

Though not all parts of London always feel overcrowded

36%

feel like a lot of residential buildings near them aren’t occupied

Residents of Central London boroughs

“Central London, especially places like the City, are horrific. Everyone is there walking around like a lemming – and then

on the weekend it turns into a ghost town.” Survivor, London

Life in London takes an emotional toll…

Proportion of Londoners who

never feel angry

2014: 15%

1987: 33%

On average, on how many days each

year do you feel

angry?

79

54Non-Londoners

Londoners

“It’s so fast-paced, everyone’s moving all the time. I think it must be awful for older people

who just want to chill, I’d find it so hard to relax in London.”

Survivor, London

On average, on how

many days each year do

you feel

stressed?

132

94 Non-Londoners

Londoners

Who gains from London?

Remember Ric, Hannah and Jackie?

OutsiderThriver Survivor

Meet Ric…he’s a Thriver

‘Thrivers’

• Middle-class (ABC1)• Aged 55 and over

• Likely to be retired with private pension

• Likely to be a homeowner• Likely to use services like

cleaners, gardeners• Likely to be White• Likely to vote

Conservative

Ric is better able to afford life in London…“It’s great for me because I live on a great pile of money having bought my house so many years

ago (although I worry for my kids).”

Thriver, London

49%23%

I have to make large sacrifices

to live in London

Thrivers Other Londoners

78%59%

There are a lot of things that I would

like to do in London but can’t

afford to

Thrivers Other Londoners

He’s more settled in his local community…

“It’s a great place to live, it’s a fabulous city. There are more picturesque places, but it’s a

great place to live.”Thriver, London

84%

Thrivers Other Londoners

52%

I feel comfortable leaving a key with

my neighbour

How often do you feel relaxed?

209 days per year

141 days per year 62%

Thrivers Other Londoners

39%

I have chosen to live in this area and feel settled and as if I belong here

And he loves what London has to offer

“All the things you can do, all the theatres and galleries, it beats every

other city.”Thriver, London

95%

Thrivers Other Londoners

82%

There are enough opportunities for

entertainment, events & cultural attractions in

London to keep me happy

Living in London makes you feel like

you are at the centre of things

84% 76%

This is Ric’s London…

Meet Hannah…she’s a Survivor

‘SURVIVORS’

• Middle-class (ABC1)• Aged 18-35

• Likely to be a graduate• Likely to be working full-

time• Likely to be living in rented accommodation

• Likely to vote Labour• As likely to be BAME as

White

Hannah feels that life in London has a cost…

“Everything in London costs double. I have friends in Manchester and their rent is half what I pay – and they earn more than half of what I do. You need to think if it’s worth

that sacrifice.”Survivor, London

58%

Survivors Other Londoners

41%

I have to make large sacrifices to

live in London

If you live in London, you

have to accept a lower quality of

life than you could have elsewhere

54%

41%

She doesn’t feel part of a local community…

“You just feel like you’re in your own little bubble. There’s a disregard for other people…

There’s not much interaction, everyone’s just doing their own

thing.”Survivor, London

45%

33%

I have chosen to live in this area and feel settled

and as if I belong here

Survivors Other Londoners

Feel lonely at

least once a week

44%

32%

And feels that she is always competing and struggling to succeed…

“London’s such a competitive environment in so many ways. In

terms of work, dating. There’s a lot of other people, so you have to

stand out and appearance is something you have to get right if

you want to get ahead.”Survivor, London

“Because there’s always so much going on, I get the

feeling that, wherever you are in London, you feel like you’re in the wrong place.”

Young graduate, York

Young Londoners feel more pressure to dress to impress

than young people elsewhere in the country.

54% of Londoners aged 18-34 choose clothes, shoes and

accessories as among their top three spending priorities, compared to 35% of non-

Londoners of the same age.

58%

Survivors Other Londoners

44%

Feel stressed every 2-3 days or

more often

Owning her own home is a pipe dream…

“I don’t think that it’s remotely possible. If you spend all your

money on rent and you’re single, I don’t think you can afford to buy in London. Especially not if you don’t have help from parents or you’re

not born into wealth.”Young graduate, London

61%

Of survivors think that they won’t ever be able to afford to buy their own home in London

Survivors Other Londoners

76%83%

Owning my own home is

something that is very important to

me

Hannah’s London looks a bit like this:

Meet Jackie…she’s an Outsider

‘OUTSIDER’

• Working-class (C2DE)• Aged 55 and over

• Likely to be retired on state pension

• Likely to be non-graduate

• Likely to be White British

• Likely to be homeowner• More likely to vote UKIP

than Thrivers or Survivors

Jackie doesn’t feel like she’s sharing in London’s success…

69%45%

I feel like there are opportunities for me to be successful in

London

Outsiders Other Londoners

My local area has got worse in the last

three years

35%

21%

“The boroughs nearer the city get all the money. The

further out you get, the smaller the share of the pot you get. That’s how it feels.”

Outsider, London

Hers isn’t a cosmopolitan lifestyle…

“When you go to Central London, it

feels like a holiday resort

with lots of people milling

around.”Outsider, London

Travel to Central London (excl. commuting)

45

93

Go to the theatre, cinema or opera

5

15

Go to a restaurant for lunch or dinner

13

25

How often do you do the following (no. of days every year)?Outsiders Other

Londoners

“I only go into London once or

twice a year. We make an adventure of

it.”Outsider, London

Jackie is being drawn out of London…

42%

14%

I would prefer to live closer to the centre

of London if the right kind of

accommodation was available

Outsiders Other Londoners

“When you get off the train in London, you breathe in and

think, ‘This is a different country altogether’. I can’t wait to get

home as soon as I get there, it’s too much… It’s too busy.”

Outsider, London

“We go to Romford or Ilford on the weekends now. It’s just

calmer and cleaner out there.”

Outsider, London

Jackie doesn’t feel part of London at all

London’s future

For now, London is still seen as a vibrant city with a future…

“My children would never consider working anywhere other than London.”

Thriver, London

London is the most popular

choice of city for non-Londoners

aged between

18-34

66%

52%

LondonersNon-Londoners

I feel optimistic about

London/my local area’s future

But is its growth sustainable if it doesn’t become more inclusive?

43%

of Londoners aged 18-34 expect to leave London within the next 10 years

“I think over the next few years, people like us will be priced out of London. We’re not

going to earn anywhere near what London expects us to earn. We’re going to need to sit back and think ‘If I move ten miles from where I

am now, I might be a bit more comfortable

financially.”Outsider, London

18-24 25-34 35-44 45-54 55-64 65+40%45%50%55%60%65%70%75%

Younger Londoners feel less optimistic about the city’s

future

Thank you for listening… and introducing our panel of experts:• Dame Tessa Jowell

(MP for Dulwich & West Norwood)• Baroness Jo Valentine

(Chief Executive, London First)• Sharon Ament

(Director, Museum of London)• Alastair Baird

(Regional Managing Director, Barratt London)

• Stephen Bevan (News Editor, Sunday Times)