#LondonLiving2019

London is the powerhouse of the UK economy and a leading force for innovation on a global stage. However, the demand drivers in the capital are becoming increasingly complex and interwoven with London’s social fabric and infrastructure pressures. C&W’s sister company, DTZi, is publishing a 12-article series exploring how we work, rest and play in the capital. The first in the series, which you can find here, was penned by Jessica Mueller, my former team member and key contributor to this blog in its early days. In this she poses the question of disruption to London’s residential market. Disruption is an inevitable force and tends to impact consumer markets, like residential, more quickly. Nevertheless, it seems that supply side constraints are attenuating the need to innovate. Whilst product specification and consumer demand in London’s rented sector are bifurcating, a lack of consumer choice props up the status quo. This can’t last. As we’ve seen in other sectors, it can take just one new organisation to shine a spotlight on the inadequacies of the industry and pave a way for rapid change. Unlike other industries, there is a really low market concentration in resi (particularly when second hand stock is factored). The barriers to entry are also lower than in the commercial markets, which leaves the sector open to new and non-traditional players. The question might therefore be whether the industry is willing to disrupt itself in spite of its current position of strength, or sit on its hands and hope that no one else does.