Number of Londoners moving within the capital back to pre-pandemic levels

• New analysis of hundreds of thousands of home-mover enquiries reveals that the number of Londoners choosing to remain in the capital for their next move is back to pre-pandemic levels:
  • During the pandemic years of 2020, 2021 and 2022, an increasing proportion of Londoners looked for their next home outside the capital, peaking at 46% in August 2021
  • Now, this has reduced to 32% of Londoners looking to move outside of the capital, as it was before the pandemic
• The resurgence of London is also reflected in an uptick in people moving into London from nearby regions:
  • In March 2020, 4.4% of movers from the South East, and 4.8% from the East of England were looking to move to London
  • This dropped as low as 3.5% and 3.9% respectively during the pandemic, and is now back up to 4.7% of movers in the South East, and 5.4% of movers from the East of England
• It’s been a promising start to the year for the London market:
  • New sellers in London are up by 11% compared with last year, and sales being agreed are up by 10%
  • It’s currently taking an average of 63 days to find a buyer in London, less than the 64 days it is taking on average in Great Britain. This metric has only been lower in London than the average in Great Britain in six out of 85 months since 2017

New analysis of hundreds of thousands of home-mover enquiries to Estate Agents by the UK’s biggest property website Rightmove, reveals that the number of Londoners looking to stay in the capital when making their next move, is now back to pre-pandemic levels.

Popularity grows in staying or moving to London

In the pandemic years of 2020, 2021 and 2022, an increasing proportion of Londoners were enquiring outside of the capital when looking for their next home.

This peaked at 46% of London movers in August 2021 that were looking to leave London rather than stay when considering their next move.

This was due to a mix of factors. The initial shutdown of cities saw much of the appeal and amenities of city life taken away and some movers looked for more space outside of urban areas. For others, there was an increase in focus on access to nature, and perhaps most importantly, changing work dynamics meant many could work in a hybrid or fully remote role for the first time, and were no longer tied to London or other major business hubs.

However, this trend of a bigger proportion of movers looking to leave London has now reversed.

32% of Londoners are now looking for their next home outside of the city, back to the level it was before the pandemic.

There has also been an uptick in people looking to move to London from outside the capital.

In March 2020, 4.4% of movers from the South East, and 4.8% from the East of England were looking to move to London.

This dropped to as low as 3.5% and 3.9% respectively during the pandemic, and is now back up to 4.7% of movers in the South East, and 5.4% of movers from the East of England looking to move to London.

Though these margins are small, the majority of people look to stay within the region in which they currently live, with moves outward spread thinly, making changes in trends more significant.

The story in charts

Positive start to the year in the capital

Overall, it has been a positive start to the year for the market compared with the more subdued Spring last year. This is reflected in activity in the capital.

The number of new sellers in London is up by 11% compared with last year, and the number of sales being agreed is up by 10%.

It’s currently taking an average of 63 days to find a buyer in London, less than the 64 days it is taking on average in Great Britain. This metric has only been lower in London in six out of 85 months since 2017

Across Great Britain, the biggest growth in activity is taking place in the top-of-the-ladder market sector, covering four-bedroom detached houses and all five-bedroom properties and above.

However, in London, agents report that due to the sky-high property prices, movers at the very top end are still being very cautious in the lead up to the general election, and while mortgage rates remain high.

This is reflected in sales activity, with the biggest uplift in sales activity in London instead coming from the mid-market second-stepper sector, which is up by 12% on last year.

Rightmove’s property expert Tim Bannister said: “Given the gravity of changes we all experience during the pandemic, it may not be surprising that we’re still feeling its effects on the market now, with some trends still heading back towards pre-pandemic levels. Many factors, such as the impact of hybrid and remote working, are still creating changes in home-mover behaviour, particularly in global hiring hubs like London.”

Lee Koffman, Director & Head of Residential Sales at Robert Irving Burns in London says: “It’s been a good start to the year, but it’s still a very cautious market. Mortgage rates are remaining higher for longer than many expected, and just this week the expectations of when the first interest rate cut will be have been pushed back. Higher mortgage rates are impacting everyone, but particularly those at the very top of the London market who tend to be more discretionary movers. The general election is also causing some uncertainty, again particularly at the very top end of prime London.

“London remains second to none for education, and we’re still seeing a lot of interest in the international students and young professionals’ markets. If properties are priced well, there is a market for them. If they are not, they are being left alone. That is the market we’re in at the moment.”

Matt Thompson, Head of Sales at Chestertons, says: “When the government lifted all remaining travel restrictions, it was only a matter of time for the capital to regain its status as global hub that attracts UK and international professionals, students, families and investors.

“London has seen a steady return of house hunters and the current volume of buyer applications is far greater than pre-pandemic levels with demand outgrowing supply. Due to the increasing number of motivated buyers, property prices in the capital have remained mostly unaffected by wider economic challenges, giving sellers the upper hand during price negotiations.”

“As London property has yet again become a hot commodity, more sellers are optimistic that now is the right time to sell. Homeowners who are putting their property on the market at the moment are in a strong position to generate viewing requests and serious offers.”

“House hunters, on the other hand, are facing more competitive market conditions. This is resulting in some buyers casting their net wider or adjusting their initial budget in order to secure the right property for them.”