For years, buying a home in London was considered a rock-solid investment. The capital's economic power, global connections, and unparalleled amenities promised strong returns. However, a stark new analysis reveals a significant shift: homeowners in London are now the most likely in the entire country to sell their property for a loss.
The Capital Tops the Loss Leaderboard
Research by Hamptons, based on Land Registry sales prices, shows that in the 2024 to 2025 period, almost 15% of London sellers sold their homes for less than they paid. This marks a sharp increase from the 9.2% recorded in 2019. Nationally, the average stands at 8.7%.
In simpler terms, this means one in every seven London sellers failed to break even or make a profit, compared to a national average of one in eleven. This poor performance has dethroned the North East, which held the unwanted title for losses in nine of the past ten years. The North East now sits in second place, with 13.9% of sellers making a loss—a notable improvement from 29.9% in 2019.
Borough Breakdown: From Tower Hamlets to Barking
The pain is not evenly spread across the capital. Some boroughs have been hit far harder than others, with property type playing a critical role. In 2025, a striking 19.9% of flat sellers made a loss, compared to just 4.5% of house sellers.
Tower Hamlets experienced the toughest time, where a massive 28.2% of sellers took a financial hit—the highest rate in both London and the UK. Flats constituted over 90% of sales in the area. It was followed closely by the City of London (26.2%), Kensington & Chelsea (22.4%), Westminster (22.1%), and Hammersmith & Fulham (20.8%).
At the other end of the spectrum, Barking and Dagenham—London's most affordable borough—saw only 5.3% of sellers lose money, despite being named the capital's unhappiest place to live last year.
Why Has London's Market Stumbled?
Property experts point to a confluence of factors behind the capital's declining resilience. Marc von Grundherr, Director of Benham and Reeves, told Metro that 2025 was a subdued year due to political and economic uncertainty, slowing price growth and sales speed.
'While interest rates stabilised and began to edge down, borrowing costs remain far higher than buyers have become accustomed to over the past decade, and with higher price points, London buyers have felt this impact most acutely,' he explained.
He also highlighted that overseas demand has not fully recovered post-Covid, partly due to targeted tax measures on second homes and high-value properties. 'When activity slows at the top end of the market, sentiment inevitably filters down,' von Grundherr noted, leading to hesitation across the board. Some sellers, growing impatient, have chosen to slash asking prices to secure a sale.
Profit and Loss Across the Nation
Despite the challenges in London, the broader picture shows most UK sellers are still making money. The average seller in England and Wales in 2025 achieved a profit of £91,260, equating to a 41% gain over an average ownership period of nine years.
Interestingly, sellers in the North West made the highest average percentage gain at 45.4%, slightly above London's 44.6%. The South East was the only other region besides London and the North East with a loss rate above the national average, at 9%.
Wales emerged as the place where sellers are least likely to lose money, with only 6.2% selling at a loss in 2024-2025, down from 12.2% in 2019.
Looking ahead, von Grundherr believes London's long-term appeal remains intact. 'The property market is usually cyclical... London’s global appeal, depth of demand and long-term resilience mean it remains a very sound investment over time,' he concluded. However, the latest data underscores that in the short term, the promise of automatic profit in the capital can no longer be taken for granted.
