London exodus is slowing down

London exodus is slowing down as 20,000 fewer properties were bought outside the capital this year, research shows

• Londoners have purchased around 81,200 properties out of the city this year
• The study, by agent Hamptons, showed this was down from 100,540 in 2021
• But affordability pressures next year may result in more households leaving city

The great London exodus appears to have passed its peak with around 20,000 fewer properties being bought outside the capital this year than in 2021, research shows.

Many Londoners escaped the city during the pandemic to move to rural areas with bigger properties.

But estate agency Hamptons estimates that Londoners have purchased around 81,200 properties away from the city this year, down from 100,540 in 2021.

However, it predicted that affordability pressures next year may result in more households being forced to leave the city to buy a home, adding: ‘Our data suggests that first-time buyers in particular are sacrificing location.’

Estate agency Hamptons estimates that Londoners have purchased around 81,200 properties away from the city this year, down from 100,540 in 2021

In a year which has seen strong house price growth outside London, just over a quarter (26%) of “London leavers” in 2022 bought properties with at least four bedrooms, down from 30% in 2020, Hamptons found.

Londoners are also moving further afield typically to get the space they require.

The average Londoner buying outside the capital purchases 34.0 miles away, 1.2 miles further than last year, according to the research.

Investors purchase furthest away, at an average of 109.8 miles, Hamptons said.

They are followed by home movers, at an average of 26.6 miles, and first-time buyers, who are typically relocating 23.2 miles away.

Aneisha Beveridge, head of research at Hamptons, said: “London outmigration appears to have passed its peak.

“While 2021 was dominated by space seekers swapping the bright city lights for pastures green, 2022 signalled the return to the office.

“That said, the widespread popularity of flexible working has meant that Londoners continue to move that little bit further out of the city to gain more space, meaning outmigration numbers remain higher than pre-Covid times.

“Next year, we expect the pace of London outmigration to cool further as pent-up demand from the Covid-related trend wanes.

“Affordability pressures, and in particular the cost of higher interest rates, may mean that more Londoners are forced to move further afield to buy a home.’

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