The 1980s and 90s saw spectacular levels of price growth as the service and financial industries throughout Britain boomed.

The ‘yuppies’ of the 1980s provided a much needed ‘shot in the arm’ to the prime London housing market. Then in the late 1990s London became the epicentre of ‘cool Britannia’, emerging as a world city to rival New York and Tokyo. The impact on value was substantial: Prime central London houses appreciated by 744% over the two decades.

Interview with Paul Tostevin

Key facts:

Job title: Associate Director

Specialisation: International Residential Market

Years at Savills: 6

About Paul: With an MA in Geography and an interest in urban design, I joined Savills in 2008 to focus on placemaking consultancy and UK development. Today I report and comment on global real estate markets as part of Savills World Research team. Prior to Savills I worked in finance in both London and New York.

Q How are new industries and buyers shaping London’s prime markets today?

A A burgeoning tech and creative sector has transformed ‘Silicon Roundabout’ and surrounding neighbourhoods such as Shoreditch into one of London’s most in-demand areas, and prices have responded accordingly.

Q What has happened to London as a global city since 2000?

A Already on the up at the turn of the millennium, London today ties with New York in our city ‘X Factor’ ranking for global competitiveness, connectivity, and prominence. It is also second only to Hong Kong for accommodation costs.

Q What will shape London’s residential markets in the future?

A The flow of private wealth from Asia in search of yield will lead to outperformance in the capital’s secondary markets.

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Taken from
25 Years of Savills Residential Research (1989 - 2014)