London faces rising youth unemployment and falling property values

London is facing significant economic pressures, characterized by rising youth unemployment and a sharp decline in central property values. According to data from the Office for National Statistics (ONS), the unemployment rate for those aged 16 and over in London reached 6.5% in the second quarter of 2026. While this is a slight decrease from the previous quarter, it remains 1.6 percentage points higher than the UK average.

The youth unemployment crisis is particularly acute, with the 16-24 age group seeing a rate of 19.6%. Excluding the pandemic period, this represents the highest level of youth unemployment in the capital in 11 years, meaning approximately one in five young Londoners seeking work is unable to find it.

Simultaneously, the real estate market in Westminster has experienced a historic downturn. Average house prices in the district fell by 25.4% over the last year, dropping from £1,145,000 in June 2025 to £854,000 by June 2026. This loss of approximately £291,000 in value is attributed to potential tax changes, including proposed wealth taxes on properties valued over £2 million and the removal of 'non-dom' status. While house prices have fallen, rental rates in London have seen an average annual increase of 3% as of July.