London Now Top Region for Home Sale Losses, Overtaking North East

In a significant shift for the UK property landscape, London has now taken the unwelcome title of the region where homeowners are most likely to sell for less than they paid. Analysis by estate agency Hamptons indicates a reversal of fortunes, with the capital overtaking the North East of England for the first time in a decade.

A Decade-Long Trend Reversed

According to the firm's research, which examined English regions and Wales, 14.8% of London sellers in 2025 sold their home at a loss. This proportion is the highest in the study and sits well above the national average of 8.7%. For nine of the previous ten years, the North East had consistently held this position.

The report highlights a stark contrast with recent history. As recently as 2019, a substantial 29.9% of sellers in the North East faced a loss, compared to just 9.2% in London. This was largely attributed to the North East's slower recovery from the 2008 financial crisis. However, stronger price growth in northern regions has since boosted returns, with loss-making sales in the North East falling to 13.9% in 2025.

Southern Struggles and Northern Gains

Hamptons describes this as a clear "reversal of fortunes" between the North and South. The growing trend of losses in London has been driven predominantly by sellers of flats. Despite this, the average London seller in 2025 still achieved a gross profit of £172,510 (44.6%) above their original purchase price, though the agency notes most of this uplift stems from historic growth.

Nationally, the average homeowner in England and Wales sold their property for £91,260 more than they paid, a 41.0% increase over a typical nine-year ownership period. This figure, however, is £570 less than the 2024 average gross profit of £91,830.

The sustained house price growth across the North of England over the past decade means sellers there are now seeing proportionally higher gains. In 2025, the average seller in the North West achieved a 45.4% increase in value during ownership. Outside London, no southern region recorded average gains above 40%.

Expert Insight and Future Challenges

Aneisha Beveridge, Head of Research at Hamptons, commented on the findings. "In London, upward house price growth is no longer the one-way bet it once seemed," she said. "In some cases, even owners who bought a decade ago still face getting back less than they paid – something that would have been almost unthinkable in the heady days of 2015."

Ms Beveridge warned that over the next few years, more sellers are likely to have missed London's 2012-2016 boom, having bought near the market peak. "That could make trading up increasingly challenging," she added.

She also noted that rising gains in the North have helped offset shrinking returns in the South, stabilising the national picture. "With much of the recent price growth in the North and Midlands now baked in, it’s possible that seller gains there could outpace those in the South – in both cash and percentage terms – for the foreseeable future," Beveridge stated.

The report concludes that the recent slowdown in national house price growth is likely to reduce future gains for sellers. This may lead many to stay put if the financial sums are unfavourable, potentially locking some homeowners, particularly those unable to secure a gain, out of the market.

Regional Breakdown of Loss-Making Sales in 2025: