Northern England property sales surpass London for first time

Property sales in Northern England have exceeded London’s transaction values for the first time in two decades, according to research from Savills.

The total value of homes sold across the North of England reached £68.8 billion in the 12 months to the end of March, surpassing London’s £67.9 billion. This marks the first time the North has outperformed the capital since Savills began tracking the comparison 20 years ago, according to The Times.

London’s declining market share

London accounted for 17.2% of all house sales in Britain during the period, representing the lowest proportion recorded since at least 2006. The shift reflects a broader trend that has accelerated since the Covid pandemic, with house prices and transaction volumes growing faster outside the capital.

Lucian Cook, Head of Residential Research at Savills, told The Times that price inflation in London over the past decade has left the market more vulnerable to interest rate rises and created barriers for first-time buyers.

Investment patterns shifting north

Buy-to-let investors remaining in the market have redirected their focus to the North, where rental yields are higher, Cook noted. The absence of significant price growth in London in recent years, particularly for flats, has also made it difficult for existing homeowners to trade up within the capital.

London’s prime property market has been affected by Stamp Duty increases and measures to abolish non-dom status. These factors have led many wealthy households to choose rental accommodation rather than purchasing property, contributing to recent challenges in the London market.

Market implications

The reversal represents a significant shift in the UK property landscape, challenging long-held assumptions about London’s dominance in the residential market. For investors, the data suggests that regional markets are offering stronger transaction volumes and potentially better returns, particularly in the buy-to-let sector where lending activity has been adjusting to new market conditions.

The findings indicate a structural change in the UK housing market, with affordability constraints and policy changes reshaping where property transactions occur and how investment capital is deployed across different regions.

Kindly shared by PROPERTYWIRE Image courtesy of Adobe