According to research from Hamptons, Londoners were responsible for just 5.3 per cent of house purchases elsewhere in the country during the first seven months of this year, marking the lowest proportion since 2013.
The total number of transactions reached only 31,620 by the end of July, approximately half the 63,600 recorded during the same period in 2021 at the height of the pandemic-driven “race for space.”
Aneisha Beveridge, Head of Research at Hamptons, said there were two key factors behind this trend.
“The return to the office has played a role in curbing the appetite for long-distance moves, but it’s the lack of price growth in the capital that’s really clipped the wings of would-be leavers,” she said.
The financial constraints facing Londoners are evident in their changing preferences for relocation destinations.
Dartford in Kent has become the top choice, followed by areas like Epping Forest and Thurrock in Essex.
This represents a shift from previous years when more affluent areas like Broxbourne in Hertfordshire and Sevenoaks in Kent were preferred.
“We’re seeing a clear shift in where Londoners are heading. The pandemic pushed buyers into leafier, more lifestyle-driven locations, but today’s movers are more pragmatic,” Ms Beveridge said.
The research reveals a growing affordability gap between London and the rest of the country.
Over the past five years, house prices outside the capital have risen by 26 per cent, more than triple the 8 per cent increase seen in London.
This disparity has significantly reduced the purchasing power of Londoners looking to move.
Someone leaving inner London today can afford a home that is 32 per cent smaller than what they could have purchased in 2016, according to Hamptons’ analysis.
This reduction equates to approximately 553 square feet – equivalent to losing two double bedrooms.
The slowdown is particularly pronounced in prime central London areas.
Data from Knight Frank shows that average house prices in these prestigious neighbourhoods – which include Chelsea, Camden, Notting Hill, and Westminster – fell by 3.2 per cent in the year to August.
While prices in prime outer London areas such as Barnes, Battersea, and Hampstead saw a modest increase of 0.5 per cent, the overall number of property transactions across London decreased by 6 per cent.
The combination of stagnant London property values and rising prices elsewhere has created a significant barrier for capital dwellers hoping to relocate.
Many potential movers are finding themselves unable to make the financial leap required to secure their desired properties outside the city.
“Many London homeowners simply haven’t built up enough equity to make the leap to where they want to go, especially as prices outside the capital have continued to climb,” Ms Beveridge said.
