More Londoners bought property outside the capital in 2018 than in 2017, study shows
In 2018 people in London bought £30 billion worth of property outside the capital city, the highest level in a decade, according to a new piece of research.
This represents a 7.8% rise on 2017’s figure when London based buyers bought £28 billion worth of homes, the study from Hamptons International also shows.
The total value of homes purchased by people in London peaked in 2007 at £37 billion when the number of people leaving the capital reached the highest level on record.
This year 74,350 Londoners bought homes outside the capital, some 3.8% more than in 2017 but, 39,290 less than in 2007.
The average price of a home bought by a Londoner outside the capital has also risen and now stands at £398,910, the highest level on record despite house prices in the capital, down 0.5% year in year in 2018. The average purchase price in 2018 was 3.9% higher than in 2017 and 37% more than in 2007.
Most Londoners leaving the capital stayed in the South of England with 77% moving to the South East, the South West or the East of England while 19% of homes sold in the East of England and (15%) in the South East, was purchased by someone from London in 2018.
However, with affordability in the capital stretched, an increasing proportion of Londoners are having to move further afield. In 2018 some 21% of Londoners moved to the Midlands and North. This compared to 15% in 2015 and just 7% in 2008.
Broxbourne is the most popular destination for London leavers in the East of England, with nearly three quarters of homes purchased by Londoners in 2018.
Meanwhile, Sevenoaks in the South East and Bath and North East Somerset in the South West are the most popular destinations in their regions, with over 52% of homes purchased there by Londoners in 2018.
Daventry is the most popular destination for London leavers to move to in the Midlands, while Middlesbrough is the most popular destination in the North with 16% of homes bought by a Londoner in 2018.
‘Historically most people moving out of London have done so because of changing priorities, such as starting a family or generally wanting a slower pace of life,’ said Aneisha Beveridge, head of research at Hamptons International.
‘But increasingly as affordability in the capital is stretched, more households are looking beyond the confines of London to buy their first home. For many this means moving further afield to areas such as the Midlands and North where they can get more for their money,’ she explained.
‘Despite a rise in the number of London leavers this year, 2018 is likely to be a peak. A slower housing market in 2019 will likely mean that we see fewer Londoners buying homes outside of the capital than in 2018,’ she added.