Londoners spent a record £54.9 BILLION on leaving the Capital in 2021
Exodus from London? Londoners spent a record £54.9 BILLION leaving the Capital in 2021 and bought more properties in the countryside and suburbs for the first time in a generation
- More Londoners are buying outside the capital than at any time since 2007
- First-time buyers make up nearly a quarter (24 per cent) of these statistics
- Hamptons estimates Londoners bought 112,700 homes outside the city this year
- It’s a rise of 62 per cent from 2020, with home working cited as a possible cause
- Dartford in Kent, Wokingham in Berkshire, and Epping Forest among top spots
London-based home-buyers purchased more properties outside the city during 2021 than in any year since 2007, analysis suggests.
First-time buyers made up nearly a quarter (24 per cent) of Londoners buying outside the capital in 2021, according to the calculations from Hamptons.
The estate agent estimates that, in total, buyers based in London purchased more than 112,700 homes outside the city this year – a rise of 62 per cent from 2020.
Londoners spent a record £54.9bn on properties outside the capital this year – the highest value on record by far and more than double 2015’s figure
The top five locations for Londoners purchasing a second home in 2021
First-time buyers made up nearly a quarter (24%) of Londoners buying outside the capital in 2021, according to the calculations from Hamptons
Research by Hamptons shows the number and value of new homes bought outside the capital by Londoners
Top five destinations for people leaving London
These are the top five destinations for Londoners leaving the capital:
1. Dartford, Kent
2. Wokingham, Berkshire
3. Epping Forest, Essex
4. Tandridge, Surrey
5. Runnymede, Surrey
The average purchase price rose from £450,460 in 2020 to £486,890 in 2021.
Londoners spent a record £54.9bn on properties outside the capital this year – the highest value on record by far and more than double 2015’s figure.
A total of £54bn was lent to new first-time buyers across the UK last year.
A rise in flexible working combined with affordability barriers have meant that more first-time buyers have left the capital than ever before.
While those selling a home in London to make a permanent move out of the capital accounted for the majority (57 per cent) of buyers purchasing elsewhere in Great Britain, first-time buyers made up nearly a quarter (24 per cent) of Londoners buying outside the capital this year, the highest share on record.
In fact, 38 per cent of London-based first-time buyers left the capital to buy their first home this year.
The capital’s loss is the home counties gain with these buyers prepared to move 24 per cent further than before the pandemic began, taking their wealth and experience with them.
Overall, Hamptons estimates that London leavers making a permanent move (i.e. owner-occupiers) outside the capital bought 91,750 homes this year, 59 per cent more than in 2020.
Meanwhile London-based investors and second home hunters made up 19 per cent of buyers, up from 17 per cent in 2020. Together they will have bought 21,030 homes outside the capital in 2021.
On average, London sellers spent £18,980 less on their home outside the capital than the price of the property they sold, Hamptons said.
On average, Londoners enjoy a comfortable £18,980 gap between their sale price and their property purchase
The average ‘London leaver’ who moved this year sold their home for £525,910 and spent £506,930 on their new property.
Hamptons identified St Albans in Hertfordshire as the top destination for first-time buyers moving out of London in 2021.
For existing home-owners who were moving out of London, Dartford in Kent was named as top hotspot.
First-time buyers are increasingly moving out of London, in contrast to investors and other home movers
The gap between what London leavers sell and buy for
Top five places for Londoners purchasing a second home
There are the top five places for Londoners purchasing a second home:
1. Arun, West Sussex
2. Chichester
3. Shepway, Maidstone
4. Wiltshire
5. Broxtowe, Nottinghamshire
The Arun area of West Sussex, which includes Arundel and Bognor Regis, was the top destination for London-based buyers purchasing a second home, the estate agent found.
Overall, London sellers sold £33.8bn worth of property in the capital in 2021, 65% or £13.3bn more than in 2020. To put this figure into context, the total value of all homes sold in the North of England last year came to £41bn.
The opportunity to work from home has meant Londoners are moving 23% or 6.4 miles further than pre-pandemic times. While most London leavers want to retain links with the capital, the average London leaver moved 34.7 miles away this year.
For many, houses outside the capital offer better value for money, and with that comes more space. Londoners traded 238,990 bedrooms in London for 274,970 bedrooms outside the capital this year.
Aneisha Beveridge, head of research at Hamptons, said: ‘The capital’s loss is the Home Counties’ gain, with these buyers prepared to move 24 per cent further than before the pandemic began, taking their wealth and experience with them.
‘There are still many uncertainties about what long-term impact the pandemic will have on the way we live our lives and how we work.
‘It seems likely that hybrid remote working is set to continue in some form, which will keep outmigration numbers above pre-pandemic norms.
‘However, after this year’s frenzy, we expect the numbers to fall back a little, particularly as house prices outside the capital are set to continue outperforming London over the next few years.
‘We expect to see the number of London purchases outside the capital average around 85,000 in both 2022 and 2023, around 10,000 more than during the five years leading up to the pandemic.’
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