Fewer Londoners leave the capital amid low house price growth and return to office mandates

Fewer Londoners are leaving the capital as sluggish house price growth and return to office mandates has caused many to stay put.

Londoners bought 31,620 homes outside the capital in England and Wales during the first seven months of this year, according to the estate agent, Hamptons.

This equates to 5.3 per cent of all homes sold outside the capital during that time and is the lowest share recorded since 2013. It is also down from a peak of 8.2 per cent in 2022 when the Covid-induced race for space was in full swing.

While a reversal of pandemic-driven migration patterns has also played its role, low house price growth in the city and a return to office-based working are also thought to be fueling the lack of movement.

The current level of outmigration sits below the pre-Covid average of 5.9 per cent recorded between 2010 and 2020.

Staying put: The share of homes bought outside the capital by a Londoner has dropped to the lowest level since 2013

Londoners lose their buying power 

House prices in London have risen at a more muted pace than elsewhere in the country.

This has gradually reduced the buying power of would-be movers, making it more challenging for homeowners to trade up or relocate to bigger homes away from London.

On average, prices have risen 26 per cent outside the capital over the last five years, triple the pace recorded in London at 8 per cent. 

However, low house price growth in the capital is forcing an uptick of leavers from inner London postcodes – where in some cases prices remain down on 2014 level, Hamptons said.

Inner Londoners now account for a record 30 per cent of all those moving out, according to Hamptons, up from 25 per cent a decade ago. 

This shift reflects how weaker price growth in central London has made it harder for homeowners to move locally, particularly when borrowing costs are high, prompting more to consider areas further afield for better value. 

So far this year, they spent an average of £417,660 on their new home outside the capital, according to Hamptons, 25 per cent more than in 2015. 

In contrast, those leaving Outer London, where prices have held up better, spent 34 per cent more than they did a decade ago. 

Despite these challenges, London leavers still benefit from the ability to buy more space when moving out of the capital. 

The typical household selling in Inner London for £655,580 this year could afford to more than double the size of their property – gaining 121 per cent or 1,178 extra square feet of space. 

However, this is nearly a third less space than if they had moved in 2016, when spatial purchasing power peaked and movers could nearly treble their space. 

Compared to 2016, the average Inner London property buys 553 fewer square feet outside of London, roughly equivalent to two double bedrooms or a typical one-bed flat. 

For Outer London leavers, the decline in the extra space they can afford to buy has been less pronounced. 

The average household selling a home for £509,800 this year could increase their space by 55 per cent, down from 72 per cent in 2016.

Square footage: The extra space gained by leaving London has reduced as a result of house prices in the capital being outpaced

‘London’s housing market has been treading water for much of the last decade, and that’s now shaping migration patterns,’ said Aneisha Beveridge, head of research at Hamptons.

‘The return to the office has played a role in curbing the appetite for long-distance moves, but it’s the lack of price growth in the capital that’s really clipped the wings of would-be leavers. 

‘Many London homeowners simply haven’t built up enough equity to make the leap to where they want to go, especially as prices outside the capital have continued to climb. 

‘The result is fewer moves, shorter distances, and a growing focus on affordability over aspiration.’

Stumped: Property values in the capital have risen at a more muted pace than elsewhere in the country, making it more challenging for homeowners to trade up or relocate

Where are London leavers buying?

The shift in migration patterns is also reflected in the changing geography of where Londoners are buying. 

So far this year, Londoners accounted for over half of all buyers in just five local authorities – down from seven in both 2015 and 2020.

In 2015, areas like Broxbourne, Sevenoaks, and Welwyn Hatfield topped the list, reflecting strong demand for traditional commuter towns. 

By 2020, Dartford, Epsom & Ewell, and Epping Forest became hotspots for London migration as the pandemic drove buyers further out in search of space.

However, in 2025, things have changed slightly with movers increasingly prioritising value over prestige in order to stay within reach of the capital. 

While Dartford, Epping Forest and Tandridge remain popular, more affordable areas such as Thurrock, Hertsmere, and Basildon have climbed the ranks.

‘We’re seeing a clear shift in where Londoners are heading,’ added Beveridge. ‘The pandemic pushed buyers into leafier, more lifestyle-driven locations, but today’s movers are more pragmatic. 

‘Places like Dartford and Thurrock are topping the list – not just because they’re commutable, but because they offer better value, particularly for first-time buyers. 

‘Even Inner London leavers, who once ventured far and wide, are now staying closer to the capital. 

‘In a sign of the times, the dream of doubling your space still exists, but it’s no longer a given. 

‘Buyers are having to compromise, and that’s reshaping the map of London outmigration.’