London's economy 'wobbling' under Brexit impact

The early effects of Brexit are already taking their toll on London's economy, according to a report from the Centre for London think tank.

A slowing housing market, subdued job creation and a decline in the number of citizens from the European Union (EU) looking for work in the capital were all highlighted as worrying signs for London's economy.

Data released last week by the Office for National Statistics showed the number of foreign workers requesting a National Insurance number declined 15% year-on-year, representing the biggest drop since the third quarter of 2015.

The report found the fall in registrations from EU citizens accounted for three quarters of the total drop.

"The significant fall in National Insurance number registrations, especially for those coming from elsewhere in the EU, is the first hard data showing that migration for work purposes to the UK is slowing," said Jonathan Portes, Professor of Economics and Public Policy at King's College.

"London will be disproportionately affected, since European workers, at all skill levels, have been hugely important to the growth and dynamism of the London economy over the last two decades."

Meanwhile, demand for luxury housing in central London, an important driver for the British capital's economy, has fallen sharply. Data released last month by Nationwide showed house prices in London recorded the slowest rate of growth since 2012, edging up 1.2% year-on-year, the second slowest pace of the 13 UK regions.

"While no-one knows how Brexit will play out, this new analysis suggests that London's economy is beginning to wobble," said think tank director Ben Rogers.

"London has shown remarkable resilience in the years following the recession. But its growth has not been painless. Levels of inequality have soared. Congestion, pollution and the housing shortage have all worsened."