More Londoners than ever are moving out of the capital. New research has revealed that around 30,000 quit London living in the first six months of this year, up 16 percent on the same period a year ago. That’s also up an incredible 61 percent on the first six months of 2008.
Hamptons International joined forces with LonRes to analyse who is moving out of the city and who is staying put.
While the majority of those leaving a London postcode behind have opted to stay in the south, some do find themselves priced out of a home in the south-east.
The research says those leaving a prime location in London for another prime location, whether in the south-east or elsewhere, end up paying more for their new home, usually because they have traded up on size.
Price main driver of relocation
Meanwhile, the research showed that more former capital dwellers are choosing to move to the Midlands or the north of England with a fifth of movers (21 percent) opting for those regions.
Hamptons International’s study also claims one in every six homes sold in the east of England goes to a buyer leaving London and says price is the main driver of this relocation because London movers are paying on average 30 percent less for a new home in the east of England than one in the south-east.
The analysis of who is leaving and moving into London also revealed that demand from current residents and higher prices for capital homes means just 12 percent of those buying in London come from outside the city. Of those buyers moving into London, the vast majority (85 percent) are from the south-east and east of England.
1st-time buyers keen to remain
Meanwhile, a third (31 percent) of first-time buyers in London bought their first home outside of the city, up from 16 percent in 2013. But Hamptons International says a combination of stamp duty relief and Help to Buy has helped more first-time buyers to stay in London.
Aneisha Beveridge, research analyst at Hamptons International, said: “With affordability stretched, more Londoners are moving out of the capital to find their new home. The proportion of London leavers heading north has tripled in the last 10 years.
“More people are making a bigger move and buying a larger home sooner to avoid having to pay stamp duty on additional moves as they trade up. But for many, this means heading further north.
“However, more first-time buyers are staying in the capital to purchase their first home than last year. The savings from stamp study relief and the availability of Help to Buy has meant that more first-time buyers are able to remain in London than before.
“But raising a deposit remains a hurdle for many, which helps explain why increasing numbers of first-time buyers who leave London are heading north.”
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