Buying in London has often been seen as the ultimate place to invest your hard earned money.
It’s where most of the jobs are, it’s unbelievably well-connected to the rest of the world, and every convenience is on your doorstep.
But new data shows homeowners in the capital are now the most likely in the entire country to make a loss when selling their homes.
In fact, almost 15% of London sellers made a loss on their property in 2024 to 2025, up considerably from the 9.2% that made a loss in 2019.
This is according to the Hamptons Research analysis of Land Registry sales prices, which suggests the national average for those selling their home for less than they bought it is 8.7%.
In plainer terms, that means one in seven Londoners aren’t breaking even or making a profit, compared to the national average of one in 11.
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It should be noted that the type of property matters significantly. In 2025, 19.9% of flat sellers made a loss, compared to just 4.5% of house owners, down from 5.7% in 2024. So, it seems if you’re able to scrape together the funds, a house is definitely the way to go.
The capital has knocked the North East off its unenviable perch after the region – home to Newcastle, Sunderland, and Durham – held the title for most losses nine of the last 10 years.
The North East still in second place behind London though, with 13.9% of sellers making a loss when selling their property. This is a vast improvement from the 29.9% of sellers suffering the same fate in the region back in 2019.
The London boroughs with the biggest losses
Although the capital came worst overall in the country, there’s a lot of variation across the city.
Sellers in Tower Hamlets had a particularly rough 2025, with an enormous 28.2% selling for less than they paid, the highest figure in both the capital and the country, with flats making up more than 90% of all sales in the area.
The City of London came in a close second at 26.2%, followed by Kensington & Chelsea (22.4%), Westminster (22.1%) and Hammersmith & Fulham (20.8%).
On the other end of the scale, those wanting to invest in the capital might want to consider Barking and Dagenham – London’s cheapest borough – where just 5.3% of sellers sold below purchase price. Though it was named the unhappiest place to live in the capital last year.
Why doesn’t London feel like a safe bet now?
‘London remains one of the most desirable property markets on the global stage and its long-term price performance reflects this,’ Marc von Grundherr, Director of Benham and Reeves, tells Metro.
However, he adds that 2025 was a subdued year for the property market because of political and economic uncertainty, which was reflected in the deceleration of house price growth and the speed at which sellers could find a buyer.
‘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,’ Marc explains.
The property expert adds that overseas demand and international investment when it comes to London property still hasn’t recovered since Covid.
‘This has been largely down to targeted tax measures on second homes, including higher stamp duty and additional charges on properties priced at £2m and above,’ he says.
‘When activity slows at the top end of the market, sentiment inevitably filters down, leading to hesitation at lower price bands and amongst domestic buyers.’
‘What we’re seeing now with respect to London price cuts is the result of some sellers growing impatient after a year of little to no interest and choosing to reduce asking price in order to secure a sale.’
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All things considered, Marc doesn’t think this makes London a bad investment when it comes to buying property. ‘The property market is usually cyclical and, with the uncertainty of the Autumn Budget now behind us, early signs of renewed momentum are already emerging in 2026,’ he suggests.
‘While some regional markets may currently offer stronger short-term growth, London’s global appeal, depth of demand and long-term resilience mean it remains a very sound investment over time.’
What about the rest of England and Wales…
The only other region that saw an above average amount of sellers losing money on their homes was the South East.
This includes the likes of Brighton, Southampton, Oxford, Winchester, and Reading.
Here, the rate was 9%, creeping up from 7.3% back in 2019.
How much profit is the average seller making in the UK?
The short of it is that most people are still making a profit when they sell their properties, and there’s some decent money being made.
The average seller in England and Wales in 2025 made a profit of £91,260 when they sold their home. This equates to an average gain of 41% over the average length of ownership which is currently nine years.
Sellers in the North West made the highest average financial gain with 45.4% – higher than London’s 44.6%.
Outside of the capital, no southern region recorded average gains of more than 40%.
As for the South West, North West and Yorkshire & Humber, the percentage of sellers making a loss were all below the national average at 8.3%, 8.1%, and 8% respectively.
If you’re keen to know where you’re least likely to make a loss, it’s Wales. Cymru saw just 6.2% of homeowners sell for less than they paid in 2024-2025 – down from a whopping 12.2% in 2019.
Now that’s certainly an improvement.
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