North England Property Sales Outstrip London for First Time in Two Decades
UKPulse Property Desk
The total value of property sales in Northern England has surpassed London's for the first time in 20 years, reaching £68.8 billion in the year to March. This significant shift highlights changing dynamics in the UK's housing market, with London's market share declining.
- Northern England's property sales totalled £68.8 billion, exceeding London's £67.9 billion.
- This marks the first time the North has outperformed London since Savills began tracking data 20 years ago.
- London's share of all British house sales fell to 17.2%, its lowest since at least 2006.
- Higher interest rates and affordability issues are impacting London's market more severely.
- Buy-to-let investors are increasingly focusing on the North due to better rental yields.
For the first time in two decades, property sales in Northern England have outpaced those in London, with a total value of £68.8 billion eclipsing the capital's £67.9 billion in the 12 months leading up to March, according to new research from Savills.
This seismic shift marks a significant rebalancing within the UK's residential property market, and is not solely down to London's woes. The city's share of all house sales across Britain during this period fell to 17.2%, its lowest proportion since at least 2006.
Lucian Cook, Head of Residential Research at Savills, believes that London's price inflation over the past decade has left it vulnerable to rising interest rates and affordability challenges – barriers that have made it increasingly difficult for first-time buyers to enter the market.
Meanwhile, buy-to-let investors are flocking to the North, where higher rental yields offer a more attractive option. This shift in investment patterns is partly driven by London's limited price growth in recent years, which has made it harder for existing homeowners to upgrade their properties within the capital.
The planned abolition of non-dom status and increases in Stamp Duty have also had a significant impact on London's prime property market. Many affluent households are opting for rental accommodation over property purchases as a result, further exacerbating pressures in the city's market.
Why this matters: This reversal challenges long-held assumptions about London's unshakeable dominance in the UK property market, signalling a structural shift in where value and investment are concentrated. It impacts regional economies and the distribution of wealth across the country.
What this means for you: What this means for you: If you are a homeowner or prospective buyer outside of London, particularly in the North, this trend could indicate continued strength in your local market. For those in London, it highlights increasing affordability challenges and a potentially slower market.