In 2025, London outmigration fell to its lowest level since 2013. There were also changes in the behaviour of those who decided to say goodbye to bright lights and seek more space outside the capital. Lower mortgage rates and the return to the office drove these shifts. Also, the hotspots for leavers were locations around the M25, not places in the heart of the countryside.
During the year, Londoners bought just 5.6% of homes outside the city – down from 5.7% last year. This was well below the pandemic peak of 8.2% in 2022. Back in 2021, Londoners bought as many as 103,310 homes outside the capital. In 2025, the total tumbled to 57,660, 44% fewer, as our analysis shows. The pre-pandemic (2015–2019) annual average was about 70,000.
Those who did leave the city did not go as far afield as in previous years. The average distance moved was 71.6 miles, 10 miles fewer than the 2024 average, which marks a return to a relocation pattern last seen in 2021.
In the pandemic, more Londoners headed to the South West, the Midlands and the North. Now they are staying closer to the city, prioritising accessibility because they have probably returned to the office for three or more days-a-week.
The South of England was the preferred destination of 68% of those who left the city in 2025, with 54% opting for a new address within 50 miles of their previous home.
"The hotspots for leavers were locations around the M25, not places in the heart of the countryside"
The Home Counties returned to fashion, offering the desired mix of connectivity and lifestyle. This followed a period when more affordable locations topped the league. As many as 18.2% of homes that changed hands in these traditional commuter belt areas last year went to Londoners, the highest share since 2017.
The hotspots were Chigwell and Basildon in Essex, Chatham in Kent and Caterham in Surrey, underlining the pulling power of the South East, the region that drew 33% of those that quit London, 4% more than in 2024. The prime locations of Esher in Surrey and Gillingham in Kent rose up the charts, having been seen as unaffordable in previous years as mortgage rates rose.
But, even within the Home Counties, places a bit more distant from London were not in vogue. Examples include Billericay in Essex and Gravesend in Kent.
A decade ago, 19% of those who chose to quit the capital were first-time buyers. In 2025, they made up 31%, only slightly less than in 2024, when the proportion was 31.5%, underlining the affordability pressures facing this group. The relaxation in the tough affordability checks imposed by lenders on mortgage applicants are the reason for this dip.
First-time buyers spent £298,360 on their first place of their own outside London in 2025, £13,450 more than the year before.
Buyers saying goodbye to London to take the next step up the property ladder spent £457,480 on their new home, almost £98,000 more than in 2024. These households accounted for 42.5% of those leaving London, against 39.8% in the year before.
"Affordability will remain a key driver of London outmigration"
The tempo of the London property market may have been subdued for a while, but cheaper mortgages have helped those with equity to relocate, often to a location that would have been too expensive in 2024.
Buy-to-let investors and second-home buyers together made up 26.5% of those buying outside London. In 2024, they accounted for 28.8% of deals. This dip is a consequence of tax increases and reforms to landlord legislation.
In the near future, we argue that affordability will remain the key driver of London outmigration. If mortgage rates are cut again, more households will stay put in the city or move less far away.
However, given that house price appreciation in London seems set to be muted over the next few years, homeowners are unlikely to build up significant amounts of equity. For those yearning for a manor house in the country, the dream may have been postponed for a little longer.
