Increasing numbers of Londoners are moving out of the capital and relocating to the North of England or the Midlands seeking more affordable house prices.
A report published by Hamptons International revealed a 61% rise in London leavers with the proportion heading north more than tripling in over ten years.
Indeed, in just the first half of 2018 Londoners bought over 30,000 homes outside the capital – which was 16% more than the same period in 2017.
In these first six months nearly a third of first-time buyers living in the capital bought their first home elsewhere – this is almost double the proportion in 2013.
Priced out of the South
Although the majority of these first-time buyers were moving to places in the East or South East of England, Hamptons said more were being priced out of this region as a whole. Four years ago the number relocating to the South and East was 95% – now it’s more than one in ten.
And the amount purchasing their first property who were moving to the North or Midlands was four times the proportion in 2010.
It’s not just the first-time buyers who are attracted by the North of England, Hamptons said many buyers moved away from the capital so they could afford a bigger home. Most London leavers, said Hamptons, stayed in the South of England – but numbers are falling as people start being priced out of the region.
In the first half of 2018 21% of London leavers moved to the North or Midlands up from just 6% a decade ago.
Stamp duty
By moving further from the capital Londoners can afford to buy a bigger home and avoid having to pay stamp duty more than once on additional moves as they trade up.
Hamptons said the average stamp duty bill for buying a detached home in the south was £14,780 compared to £5,358 in the North.
Aneisha Beveridge, research analyst at Hamptons, said: “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 duty 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.”
