As we enter 2025, the London property market is showing fascinating shifts in buyer behaviour and migration patterns. Recent analysis reveals significant changes that affect both those looking to stay in the capital and those considering a move elsewhere.
At David Harris & Co, we want to ensure you make informed decisions, and whatever move you wish to make in 2025, we are here to assist you.
Some quick points to consider at the start of the year:
● London homeowners are increasingly choosing to remain in the capital, with outward migration dropping to 5.7% of all property purchases outside London - the lowest level we've seen in over a decade and a notable decrease from 8.2% in 2022
● First-time buyers now represent nearly one-third (31%) of Londoners purchasing properties outside the capital, marking a remarkable doubling of this demographic since 2013
● Those who do leave London are moving significantly further afield, with the average distance now reaching 33.1 miles - 19% further than pre-pandemic levels
● The total number of London departures has decreased by 45% compared to the 2021 peak, with approximately 57,020 purchases outside the capital in 2024
While this is a lot of information to take in, we appreciate it means different things to different people. At David Harris & Co, we are proud to serve a wide range of clients and customers, so we have broken down the information into relevant points for specific parts of the property and lettings market.
The market is showing signs of stabilisation, with the slowing exodus potentially helping to maintain property values. The anticipated reduction in mortgage rates through 2025 could bring more buyers back to the market, particularly beneficial for those who have been waiting to sell.
With property prices having remained relatively stable or fallen in some areas, combined with decreasing mortgage rates, opportunities are emerging for those looking to purchase within the capital. This is particularly relevant for those who may have previously considered leaving London but now see better value in staying.
The changing market dynamics have created interesting opportunities. While London remains expensive, the improving balance between buying and renting costs means that first-time buyers should carefully evaluate their options both within and outside the capital.
The strong rental market in London, coupled with stabilising property prices, suggests potential opportunities for long-term investment, particularly given the number of residents choosing to remain in the capital.
As we move into 2025, several factors suggest a dynamic year ahead:
● Expected further reductions in mortgage rates could stimulate market activity
● The trend of looking further afield for better value continues, particularly among those leaving London
● The market may see increased movement from homeowners who have been holding off moving due to previous market conditions
For those considering selling: The early months of 2025 could present a good opportunity as mortgage rates continue to decrease and buyer confidence potentially increases.
For potential buyers: Consider starting your property search early in the year to potentially benefit from current prices before any market uplift.
For those undecided about leaving London: Take time to compare the total costs of living in different locations, considering factors beyond just property prices.
For investors: Research areas where rental demand remains strong and where property prices have remained stable.
The market is showing signs of evolution rather than revolution. Whether you're looking to buy, sell, or invest, the key is to make informed decisions based on your specific circumstances and long-term objectives.
We have assisted many Finchley homeowners and landlords looking to sell or let their property, and we know what buyers are looking for when searching for accommodation. You can take the stress out of connecting with likely buyers by turning to a local estate agent in Finchley.
If you want to make an informed decision in and around Finchley’s property market, we are here for you. If you have any questions about the local housing market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
