Londoners spend nearly a third less on homes outside the capital
Hamptons research reveals downsizers are bucking the trend and still driving outmigration from the Capital as they hunt for more value and space.
Londoners spent £28.7 billion on homes outside the Capital this year – 29% or £11.7 billion less than in 2022 and £20.1 billion down on 2021 when outmigration peaked, research from Hamptons reveals.
But while spending is back to pre-Covid levels with fewer sales taking place across the market the number of homes bought by Londoners outside the capital fell to 69,190 in 2023, the lowest figure in nine years.
AFFORDABILITY PRESSURES
Meanwhile affordability pressures have driven a rise in outmigration from the Capital and remains higher than pre-Covid with London leavers increasingly downsizing for both value and space.
Of the 32,090 households who sold a home in London and bought outside the capital, a record 77% of movers spent less on their new home, up from 60% in 2022 while first-time buyers made up a record 30% of Londoners buying outside the capital this year, up from 12% a decade ago.
And the rise in London property values means that more people than ever before are paying cash for their new home outside the capital.
Of the households spending less on their new home in the regions, a whopping eight out of 10 (81%) bought without a mortgage, up from just just over half (51%) in 2022.
MILLION HOMES
Aneisha Beveridge, Head of Research at Hamptons, says: “With only around a million homes changing hands across Great Britain this year, fewer Londoners crossed the M25 in 2023.
“However, those that did tended to be downsizers or first-time buyers. Downsizers, tired of London life, are looking further afield to release cash and clear their remaining mortgage balance.

“Meanwhile higher mortgage rates have reduced first-time buyers’ purchasing power, pushing them to search for more affordable homes further afield.”
And she adds: “With mortgage rates expected to continue falling in 2024, the affordability picture should improve. We expect this to slow the pace of London outmigration somewhat, as younger Londoners can increasingly afford to buy locally.
“Upsizers, who have sat tight in a subdued 2023 market, are likely to come back into the fold as it gets cheaper to borrow, meaning they’re likely to dominate those leaving the capital next year.”