Why Are Londoners Moving Beyond the M25 — And What Can Be Done About It?

The migration of Londoners beyond the M25 is no longer a trend it’s becoming a shift. As property prices soar, space tightens and post-pandemic priorities evolve, more people are choosing to settle in outer commuter towns or even further afield. But what does this mean for the capital, and what should local authorities be doing to reverse this urban exodus?

A primary driver behind the move is affordability or the lack of it. As of mid-2025:

😮 The average cost of a 3-bedroom house in London is approximately £730,000, with some boroughs exceeding £1 million.
😮 A 2-bedroom flat averages £525,000, with first-time buyers often priced out without substantial deposits or help-to-buy schemes.

High living costs, paired with rising mortgage rates and ongoing inflation pressures, are pushing families and young professionals to seek better value elsewhere in places like Reading, Luton, Stevenage and even Birmingham, where housing is more accessible and space more generous.

 

The pandemic reset expectations around work-life balance. The rise of hybrid working means proximity to a Central London office is no longer essential. This has encouraged many to seek homes with more outdoor space, larger interiors and cleaner air, benefits often unavailable or unaffordable within the capital.

 

London is still building, but not fast enough, nor always in the right way.

While schemes like Old Oak Common, Thamesmead regeneration and the Barking Riverside project show promise, the pace of new, genuinely affordable homes lags far behind demand. Developers often face long delays in planning approvals, infrastructure constraints and local opposition, especially to high-rise or high-density proposals.

There’s also a disconnect between what's being built and what people want. Young families don’t just need flats near stations, they need homes with green spaces, community facilities, schools and security.

 

To stop the outflow, London’s borough councils and City Hall must act decisively:

1) Streamline planning to support mixed-use and family-friendly developments.
2) Prioritise affordable housing, not just social housing, but shared ownership and key worker schemes too.

3) Invest in infrastructure, especially in underserved outer boroughs.
4) Reclaim vacant land and buildings, converting unused space into residential hubs.

5) Promote sustainable urban living: think low-emission zones, green corridors and walkable neighbourhoods.

 

A shrinking London population threatens more than just the property market. It impacts:
 

a) The local economy, as spending power shifts elsewhere.

b) Public services, which lose funding when populations drop.

c) Innovation and talent, as creative professionals and graduates look to other cities with better opportunities or affordability.

London’s status as a global city relies on its people: diverse, ambitious and creative. If too many leave, the vibrancy of the capital dims.

 

London has always reinvented itself after fires, wars and recessions. Now, it must adapt again to a new era of mobility and affordability. The question is not whether people want to live in London — they do. But they need to be able to afford it, enjoy it and grow within it.

The challenge for developers, planners and policy makers is to ensure that London is not just a place to visit or to work, but a place to live for life.