More Londoners are now choosing to buy homes further away from the city in search of better value for their money. According to a report by Hamptons International, the average distance for homebuyers moving out of the capital reached a record 39 miles between January and June, an increase of six miles compared to 2019, and 65% further than most first-time buyers.
“Four years after the pandemic, many city workers have adapted to a new routine for office work,” said Aneisha Beveridge, head of research at Hamptons. “To maximize their savings, people are continuing to move farther from the capital.”
UK households are facing a combination of challenges, such as rising interest rates and increased living costs. Although mortgage rates have gradually fallen from their 2023 peak, the number of repossessed homes in the UK rose by 8% in the second quarter of this year.
Over a quarter of Londoners who moved outside the city in the first half of the year relocated more than 100 miles away. This is a notable increase from the 17% average seen between 2015 and 2019. Londoners are moving 50% further than they were ten years ago, with higher transaction costs making shorter, frequent moves less appealing, according to Hamptons.
The Midlands and western England, specifically Gedling and North Somerset, have seen significant increases in Londoners relocating, with numbers doubling in the first half of 2024 compared to the same period in 2023. Nearly half of all homes purchased outside London from January to June were bought by former Londoners.
However, the trend of first-time buyers leaving London has slowed in the first half of 2024. Declining mortgage rates and lower house prices have made it more attractive for prospective buyers to stay within the capital. First-time buyers accounted for 48% of homes sold in London during this period, an increase from 41% in 2023 and 28% a decade ago.
Additionally, more first-time buyers are opting to purchase homes in affordable areas closer to London rather than moving further away. The percentage of first-time buyers relocating to rural areas has dropped by half since its peak in 2020.
“Lower mortgage payments have made buying a home more affordable than renting again, offering relief to first-time buyers in London,” Beveridge said. “Buyers with bigger budgets are reconsidering London, preferring areas like Clapham over Crawley and Wembley over Wycombe.”