Seventy-four thousand Londoners bought outside London, 11,000 more than in 2015 and just 16,000 fewer than in 2007 which is the highest number on record.
The average Londoner, buying outside the capital, spent £388,000 on their new home, a total of £29 billion – the highest number since 2007, when 90,000 homes were bought, totalling £32 billion.
The majority of Londoners leaving the capital stayed in the South of England. Eighty per cent of those leaving London bought in either the South East, South West or East of England. One in every six homes sold in the East of England and one in every seven in the South East, was sold to someone from London. In percentage terms this equates to 17.3% and 13.9% respectively.
Of the 17 local authorities which border the capital, more Londoners bought homes than existing residents in 10 of them.
But as price rises across the South of England (up 9.1% y-o-y) outpaced those in London (up 7.7% y-o-y), both the proportion and number of Londoners heading further North has been steadily rising. In 2016, 20% of London leavers bought in the Midlands or the North, compared to 12% in 2014 and 10% in 2012. In 2016 the number of homes bought by Londoners in the Midlands rose by 21% compared to 2015, while in the North it grew by 13%.
With many Londoners leaving the capital for a bigger home, almost three quarters of London leavers (74%) buy a home with three or more bedrooms, spending an average of 18% more than local buyers. While many take advantage of being able to buy larger homes for their money, for others, leaving London is the only way of getting onto the housing ladder. Forty per cent of first-time buyers living in London end up buying outside the capital, up from 20% in 2012.
Johnny Morris, Head of Research at Hamptons International commented: “A move out of London has generally hadmore to dowith changingprioritiesaspeople get older and start formingfamiliesthan the housing market. But withaffordabilityin the capital stretched,more Londonersare looking elsewhere to buytheir first home. More too are likely to go further afield,with increasing numbersheadingto the Midlandsand North.
It islikely2016 will be apeak for London leavers. While overall the year saw growth in Londonersbuying outside of the capital, inrecent monthsthe pace hasbeen slowing. A slower housingmarket in 2017 will likely mean that we see fewer Londoners buying outside of the capital than in 2016.”
