The proportion of Londoners purchasing homes outside the capital has fallen to its lowest level since 2013, according to research by property firm Hamptons. The study reveals that Londoners accounted for just 5.7% of homes sold outside the capital in 2024, a decline attributed to changing market conditions and shifting buyer priorities.
First-time buyers on the move
First-time buyers have emerged as a significant group among Londoners relocating, making up nearly a third (31%) of those purchasing homes outside the capital this year. This figure has more than doubled since 2013, reflecting the growing number of younger buyers seeking more affordable housing options beyond London’s high-priced market.
Aneisha Beveridge, head of research at Hamptons, commented:
“First-time buyers have been the exception to the rule, with many keen to escape the capital’s rental market. As mortgage rates have fallen this year, it’s generally become cheaper to buy than rent again, even with a small deposit.”
Shifting patterns of relocation
Hamptons’ analysis, based on sales data from Countrywide estate agency brands, highlights notable shifts in relocation patterns:
- Average distance moved: Excluding second-home buyers and landlords, Londoners moved an average of 33.1 miles in 2024, 5.3 miles further than the average distance recorded between 2015 and 2019.
- First-time buyers: The typical first-time buyer relocated 25.5 miles this year, slightly down from 26.3 miles in 2023.
- Home sellers: Londoners selling properties in the capital moved even further, averaging 45.4 miles from the city.
Rising prices limit options
Strong house price growth outside London over the past decade has constrained the options for those looking to move, reducing the additional space or quality of property they can afford. Beveridge noted:
“Stagnant or falling property prices in parts of the capital have limited equity growth, while house prices elsewhere have risen much more quickly since Covid. With a trophy home slipping out of reach, many London homeowners have opted to stay put or move further afield.”
Investment trends in blackpool
The research also highlighted an uptick in Londoners buying properties in Blackpool, Lancashire, compared to five years ago. However, this increase is largely attributed to investment purchases rather than relocations.
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The average gross yield on a new buy-to-let property in Blackpool reached 10.1% this year, significantly higher than the 5.7% yield in London. This difference has made the northern seaside town an attractive option for property investors seeking higher returns.
Future trends
Hamptons predicts an increase in London outmigration next year as the capital’s property market begins to recover and mortgage rates continue to edge down. Beveridge explained:
“With mortgage rates likely to remain above historic levels, we expect more of these movers to look further afield to secure the home they could have bought in the Home Counties a decade ago.
“The high income and savings bar needed to buy a home in London has pushed more aspiring homeowners to look beyond the capital for their first home. Looking ahead, we expect an uptick in London outmigration numbers next year as the capital’s property market begins to pick up.”
The broader context
The data underscores how economic shifts and the housing market have influenced Londoners’ buying behaviour. While some are motivated by the capital’s stagnant property prices, others are driven by the prospect of more affordable housing and better value for money in regions further afield.
As affordability pressures continue, the trend of relocating outside London will likely remain dynamic, shaped by broader market forces and individual aspirations for homeownership.
