Londoners no longer want to buy property outside the city

Londoners are buying less property outside the capital. In January–July 2025 such deals accounted for only 5.3% – the lowest figure in twelve years, writes The Guardian citing Hamptons data. Slower price growth in London and the return of office work have made relocations to the regions less attractive.

In 2021 Londoners bought about 63,600 homes outside the capital, during the so-called pandemic “race for space.” The mass shift to remote work allowed buyers to choose larger properties farther from the city. In 2025 the situation has changed: in January–July such deals numbered only 31,600. Most employees have returned to offline work, and long commutes clearly do not appeal to them.

Prices also played a role. Over the past five years housing outside London has risen by about 26%, while in the capital itself – only by 8%. This gap deprived many city apartment owners of the chance to swap for larger houses in other regions: proceeds from selling became insufficient to afford bigger homes outside the capital.

According to Knight Frank, in central London average prices fell 3.2% year-on-year to August, pointing to a cooling of the prime housing segment. At the same time, outer boroughs posted a slight 0.5% increase, while the overall number of deals in the city dropped by around 6%. Rightmove shows that in April London again ranked first among the most popular search destinations on the platform. Moreover, 58% of users from the capital looked for options inside the city rather than outside.

The coastal towns segment, which became popular right after lockdowns, is losing its appeal. On average the listing period for such properties increased from 52 to 73 days, showing weaker buyer interest. For regional markets this means slower sales and stronger reliance on domestic demand.

Ten years ago Broxbourne and Sevenoaks topped the list. Now demand has shifted closer to the capital. Buyers prefer areas with fast connections to London, even if this means smaller space or a higher price per square meter. Among nearby suburbs the leaders are Dartford in Kent, Epping Forest and Thurrock in Essex.

Lower activity from London buyers is also changing developers’ strategies. New projects are increasingly focused on suburbs and well-connected districts where demand remains steady. More remote locations are forced to adjust price expectations and adapt to fewer transactions.

Reuters reports that signs of cooling are visible across the UK. A survey by the Royal Institution of Chartered Surveyors (RICS) shows that the number of new buyer inquiries in July fell to -7. In August it dropped further, to -17 – the lowest since May. Agreed sales also declined: to -17 in July and to -24 in August.

The house-price balance in July stood at -13, and in August dropped to -19. This is the weakest since January 2024, when it was -23, and worse than economists’ forecast of -10. Against this backdrop, mortgage lenders Halifax and Nationwide note more favorable results: in July they saw price stability and 2% annual growth. Imbalance persists in the rental market too. Demand is rising, but new supply recorded the sharpest fall since April 2020 – down to -37. As a result, 27% of respondents expect rents to rise in the next three months.

RICS head of research Tarrant Parsons highlights that with weaker demand and fewer deals the market is clearly feeling the impact of economic and fiscal uncertainty, as well as doubts about future rate policy. In July analysts estimated inflation at 3.8% – the highest among major developed economies. The Bank of England projects a peak of 4% in September and a return to the 2% target only by mid-2027. Finance Minister Rachel Reeves states that the government must help the central bank fight inflation and stimulate growth, and in November will present a budget that is expected to raise taxes.

Read more:

UK Debates New Tax on Expensive Homes

United Kingdom on the Brink of a New Debt Crisis

UK Housing Construction: Developers Shifting Away from High-Rises