Londoners opt to stay close to capital as pandemic trend of moves to the country falls away

The research found that first-time buyers leaving the capital are increasingly seeking out more affordable areas closer to London rather than moving further afield.

The average first-time buyer leaving London moved 23.8 miles this year, 2.6 miles less than last year.

With people spending more time in the office, the share of first-time buyers leaving London for the countryside has halved from its six per cent peak in 2020.

Of the top 15 areas recording the biggest increase in the number of first-time buyers looking to move from London, Stockport is the only place in the North to feature.

Eleven of the 15 local authorities that have seen the biggest increase in the number of first-time buyers looking to move from London are located in the South East or East of England, often with convenient transport links into the capital

Aneisha Beveridge, Head of Research at Hamptons, said the return of office working has contributed to the trend.

“Falling mortgage rates are starting to turn the tide on the rising number of first-time buyers leaving London,” she said.

"Lower mortgage payments have pulled the cost of buying back below renting, bringing relief to those looking for their first home in the capital.

"First-time buyers with deeper pockets are looking again at London, choosing Clapham over Crawley and Wembley over Wycombe.

“But the number of first-time buyers leaving London has risen sharply over the last decade and levels remain high. Until 2016, new buyers were pushed out by soaring house price growth.

"But since 2022, rising mortgage rates made repayments on higher value homes an unaffordable outlay for many looking to buy their first home, pushing them in search of affordable areas outside the M25.

“Four years on from the pandemic and many city workers have settled into a new normal when it comes to going into the office.

"First-time buyers are more likely to stay closer to London than they have been over the last few years.

"Keen to retain their links with the capital, this has put the more affordable M25 towns firmly back on the map for younger homeowners.

"However, in a bid to make their equity stretch further, movers continue to make longer distance moves out of the capital.”