The Global Capital
London on the Move
Londoners open up to more options on their search for homes outside the capital.
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During the last 12 months, Londoners bought more than 77,500 homes outside of the Capital, 22 per cent more than the 63,500 bought in 2015. The growing trend to leave reflects the temptation to cash in on record house prices in the city and move further afield to get more for their money. With house price growth expectations for London waning, and many expecting price falls, an increasing number of Londoners have chosen 2016 to make their move.
80 per cent of households leaving London moved to areas in the South of England – this has always been the most popular destination for migrating Londoners. Property is more affordable, but is still within a comfortable commuting distance of the capital so movers can still keep their higher paying London jobs. Many of these buyers are in their 30s and 40s looking for more space to raise families and a different, less urban, lifestyle.
Although moving out of London is part of the natural cycle as household priorities change, people are making the decision to move out at a younger age. Affordability in London is stretched, but even those who can afford to buy there are choosing to look further away. And as prices in the most popular commuter towns have risen, Londoners are progressively having to look away from the traditionally more expensive areas, towards relatively cheaper areas such as Broxbourne, Thurrock and Brentwood in the East.
That doesn’t mean Londoners have turned their backs on the traditionally more popular areas to move to, such as Bath and Sevenoaks. Thanks to house price growth in London outpacing that anywhere else in the country, people leaving the city have been able to afford that little bit more. In the last year, Londoners buying outside of the Capital were able to afford to spend 20 per cent more on a home than the average buyer - up from 10 per cent the previous year.