The London property market has struggled to keep up with the rest of the country in terms of price rises in recent years, and new research shows a rise in London movers leaving the capital.
With average house prices of £694,906 in London according to the latest data from Rightmove, the capital is exceptionally more expensive than the rest of the country. The UK average house price by Rightmove’s estimation is now £371,958, falling to as low as £192,742 in the North East.
Likewise, the rental market in London is home to the highest prices, with the average monthly rent hitting £2,145 in the latest data from the Office for National Statistics. Across the UK, tenants spend an average of £1,308 on their rent each month.
At the same time, London is a global financial hub with a huge range of job opportunities for those who live and work there, and wages tend to be above the national average to account for some of the increased cost of living there. It is one of the most multicultural places in the UK, known for its diversity, entertainment and amenities, and is home to prestigious educational facilities.
Yet as the cost of living has continued to climb, while at the same time businesses have increased their presence across the UK with less of a focus on the capital, other parts of the country have begun to look more attractive, whether you’re buying, renting or investing. For many, London property prices are unsustainably high, and this has been affecting resident behaviour.
New trends for London property
New research has noted an increase in the number of people moving out of their London property, who are opting to relocate completely rather than stay in the capital.
The third quarter of the year is always a popular time to move house in the London property market, as people make their moves over the summer, while those who are studying in the capital select a new place to live ahead of a new term beginning in September. This year, however, the research from Compare My Move found that the number of movers in Q3 fell by 20.8% compare with last year.
But it did find that, of those who were moving house from their existing London property, more than a third (37%) were doing so in order to move to a new location outside the capital. This is up from 35% this time last year, and up from 29% in Q1 2023, demonstrating a shifting trend for London residents.
Compare My Move put the drop in mover numbers down to an 18% increase in removal costs during the time frame, which could have put people off using the services of a professional removal team. Post-election uncertainty could also have played a part, with people holding off on making any big moves until the economic outlook was clearer.
Where are people moving to?
Unsurprisingly, the majority of people leaving their London property behind for a new destination chose not to move too far afield. Compare My Move’s research shows that 38.5% people who left the capital in Q3 2024 were relocating to the South East, while 25.7% opted for a new home in the East.
Staying within easy reach of a city is a trend not just seen within the London property market. For example, the commuter towns around Manchester have seen a surge in popularity in recent years, alongside greater levels of investment and regeneration. For similar reasons, people tend to get more for their money in these locations, while still being able to avail of the city’s jobs and amenities.
Smaller numbers of London leavers relocated to other parts of the UK, with the South West attracting 9.9% of movers, 5.6% moving to the West Midlands, 5.3% moving to the North West, 4.3% to Yorkshire and the Humber, 3.4% to Scotland, 3.4% to the East Midlands, 2.1% to Wales, 1% to the North East and 0.8% to Northern Ireland.
