First-time buyers heading out of London after issues with Capital
The number of Londoners buying homes outside London increased by 50 per cent over 2014 and is now at its highest level since 2007, according to new research published by Hamptons International, which has a branch in Hart Street.
The number of Londoners buying homes outside London increased by 50 per cent over 2014 and is now at its highest level since 2007, according to new research published by Hamptons International, which has a branch in Hart Street. It reports that, in total, Londoners bought 58,000 homes outside London in 2014 worth a total of £21 billion.
The data showed that 80 per cent of Londoners moving out of the capital relocated to the South East and East of England, representing a record proportion of purchases in these markets.
Commenting on the analysis Johnny Morris, head of research at Hamptons International, said: "Last year saw a significant rise in the number of Londoners moving out of the capital. Over the downturn many Londoners delayed life stage moves, restricting the natural flow of families out of the capital and building a pent up demand.
"As the gap between house prices in London and the rest of the country has widened to record highs, an average of Â£282,000, and expectations of future house price growth have moderated, many Londoners are now choosing to cash in and move out of the capital."�
The price gap has not escaped the notice of first-time buyers either 15,000 Londoners made their first home purchase outside the capital in 2014, a 70 per cent increase on 2013. This equates to about 30 per cent of the capital's first-time buyers choosing to purchase outside London. High house price growth over 2014 further raised the barrier for first-time buyers looking to access the housing ladder in London, leading many to look to cheaper areas with good transport links to the capital.
â??First-time buyers leaving the capital are spending Â£192,000 on average, compared to Â£248,000 spent by those buying in London,â?� continues Mr Morris.
â??That means that those leaving the capital need about Â£10,000 less in stamp duty and deposit and will pay £250 less a month in mortgage payments. Those leaving the capital are also getting an extra bedroom, with three-bedroom homes being the most common, compared to two-bedroom properties bought by London first-time buyers.
â??We expect the flow of Londoners out of the capital to continue to increase over 2015. This will drive markets in the South East and is one of the key reasons we are forecasting price growth here to outperform London and the rest of the country.â?�
On the back of all this new data, Hamptons is going ahead with some roadshows at three of their London branches, in the second Â week of March, to highlight the pros of moving outside the capital.
The company said it wants to provide those living in London with an invaluable insight into the best places to move outside London, and showcase an array of houses available to buy in prime areas of the commuter belt and countryside.
Homes Weekly wouldnâ??t be surprised to see Henley and its surrounding areas on its list.