The search for higher yields to cover rising costs led to nearly two-thirds (62%) of London-based investors buying property in the regions this year, up from 26% a decade ago.
Hamptons’ research reveals that landlords made up a record 21% of Londoners choosing to buy in the regions, up from 16% in 2021 and 9% a decade ago.
But the overall share of those buying property outside the capital slowed in 2022, back towards pre-Covid norms; Londoners bought 7.3% of homes, down from a 14-year high of 7.8% in 2021. Driven by rising prices, first-time buyers made up a record 28% of these buyers.
Strong house price growth has also meant that buyers had to look further afield to find the space they need.
The average was 34 miles away, one mile further than last year which itself was a record, although BTL investors bought properties the furthest away, at an average of 109 miles, a figure which has doubled since 2013.
Midlands or North Hamptons says 54% of London-based investors bought a buy-to-let in the Midlands or North, up from 20% a decade ago.
Several of the local authorities that have seen the biggest increase in the proportion of prospective buyers coming from London are outside traditional commuter belt hotspots.
In 2019, just 1% of applicants registering to buy in Wiltshire came from London but by this year, 16% of prospective buyers were looking to relocate from the capital.
Aneisha Beveridge, Hamptons’ head of research, says it expects the pace of London outmigration to cool further next year as pent-up demand from the Covid-related trend wanes.
She adds: “But affordability pressures, and in particular the cost of higher interest rates, may mean that more Londoners are forced to move further afield to buy a home.”
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