London has become the region in England and Wales where home sellers are most likely to sell their properties for less than they originally paid, according to recent analysis by estate agency Hamptons. This shift marks a significant change in the housing market dynamics between the North and South, with implications for landlords and agents managing property portfolios in the capital.

Shift in Loss-Making Sales: London Surpasses the North East

Hamptons’ data reveals that in 2025, 14.8% of London homeowners sold their properties at a loss, the highest proportion across England and Wales and considerably above the national average of 8.7%. This is a notable reversal from previous years when the North East consistently recorded the highest share of loss-making sales. For example, in 2019, nearly 30% of sellers in the North East sold at a loss, compared with just 9.2% in London. Since then, loss-making sales in the North East have steadily declined to 13.9%, while London’s figures have increased.

For landlords and letting agents, this trend highlights the importance of understanding local market conditions, particularly in London, where property values and demand can vary significantly by area and property type.

London’s Property Market: Challenges for Sellers and Landlords

Aneisha Beveridge, head of research at Hamptons, commented on the changing landscape: “In London, upward house price growth is no longer the one-way bet it once seemed. 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.”

She further noted that many sellers may have purchased at the peak of the market between 2012 and 2016, which could make it difficult to trade up in the coming years. This is particularly relevant for landlords considering portfolio adjustments or property upgrades in London.

Despite these challenges, the average homeowner in England and Wales still sold for £91,260 more than their purchase price, representing a 41% gain over an average holding period of nine years. However, this average masks significant regional variations.

Flats in London: Higher Risk of Loss

Flats accounted for 60% of London property transactions in 2025 and represented 90% of homes sold below their purchase price. Flat owners were four times more likely to sell at a loss than house owners nationwide, with 19.9% of flats sold at a loss compared to just 4.5% of houses.

This disparity is critical for landlords specialising in flats, particularly in central London boroughs, where the concentration of loss-making sales is highest. Understanding these risks can inform investment decisions and portfolio management strategies.

Central London Boroughs Most Affected

The highest likelihood of loss-making sales is concentrated in London’s central boroughs. Tower Hamlets leads with 28.2% of sellers selling for less than they paid, followed by the City of London, Kensington and Chelsea, Westminster, and Hammersmith and Fulham. In these areas, more than one in five vendors sold at a loss, whereas outer boroughs like Barking and Dagenham saw only 5.3% of sellers in this category.

Despite this, long-term property owners in London have still realised substantial gains. The typical London seller achieved a £172,510 increase on their purchase price, a 44.6% rise, with 77% of total gains coming from those holding property for more than ten years. This suggests that long-term investment remains a viable strategy for landlords in the capital.

Stronger Growth in Northern Regions

Outside London, sellers in the North West, North East, and Yorkshire have benefited from stronger recent price growth, resulting in higher returns than many southern regions. The North West, for example, recorded average gains of 45.4%, exceeding London’s overall growth.

The Midlands and Northern England now dominate the list of areas with the lowest share of loss-making sales. Among the 20 local authorities with the fewest sellers losing money, only two were in the South. Harlow topped this list with just 0.8% of sellers making a loss, followed by High Peak and Broxtowe.

For landlords, these trends highlight the potential benefits of diversifying property portfolios beyond London to regions with stronger recent growth and lower risk of loss-making sales.

Implications for Landlords and Agents

These findings emphasise the need for landlords and letting agents to carefully assess local market conditions, particularly in London’s central boroughs where the risk of loss is higher, especially for flats. Long-term holding periods continue to offer the best chance of capital growth, but market timing and property type remain critical factors.

Landlords should also consider regional market trends when planning acquisitions or disposals, as northern regions currently offer stronger growth prospects and lower risk of selling at a loss.

Looking Ahead: Support for Landlords

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to become TLA service partners. This initiative aims to provide landlords with reliable resources to navigate the evolving property market effectively.