London Tops the List of Loss-Making Home Sales

London's long-held reputation as a property goldmine is shifting. In a You and Yours programme aired on 14 January 2026, BBC Radio 4 highlighted a significant change in the UK housing market: Londoners are now more likely than anyone else in England and Wales to sell their home for less than they originally paid, especially flat owners.

The Data: London Leads the Loss League

Research discussed in the programme, drawing on Land Registry and Hamptons analysis, found that in 2025, 14.8% of London homeowners sold for less than their purchase price. That was higher than the national average of around 8 to 9%, and a reversal of the regional pattern seen for years, where the North East traditionally had the highest proportion of loss-making sales.

As Hamptons' head of research put it on You and Yours: "London has long been seen as a bit of a sure bet, but for most of the last decade, particularly homes in prime central London or some of those prime outer spots, prices have really been struggling."

This shift is not a blip. It reflects trends going back to 2015 when house prices began to struggle under rising interest rates and reduced affordability.

Flats Hit Hardest

The Radio 4 discussion emphasised that flat values in London have fallen most sharply, and this is echoed in recent data. Flat sellers accounted for a disproportionate share of the loss-making sales, around 90% of the homes sold at a loss in London were flats, partly because flats make up a large share of transactions in the capital.

A social media snippet voiced in the programme captured this reality: "Is anyone else struggling to sell a one-bed flat in London? A handful of fizzled viewings, agents blame the market, insist on a price drop, and still no progress."

For many flat owners, particularly those who bought at the peak of the market around 2021 to 2022, the maths now feels stark: prices are lower, buyer demand is softer, and maintenance and service charges remain high.

Market Dynamics: Why Prices Are Falling

Experts in the programme linked London's price stagnation to a combination of factors:

• Higher borrowing costs: years of rising interest rates have reduced what buyers can afford.
• Changing buyer preferences: first-time buyers increasingly look for larger spaces further out, aided by flexible working.
• Rising costs of flat ownership: service charges and running costs weigh heavily on demand for flats.
• Agent pricing practices: sellers often list at optimistic prices, slowing sales, whereas properly priced homes are selling faster.

As one estate agent said on air: "It is getting the price right at the beginning. If a property is priced right, it is taking about 32 days to sell, but if it is priced wrongly, it is taking 99 days."

Long-Term Context: A Slower London Market

Analysis beyond the radio programme confirms this narrative. In 2019, London's proportion of loss-making sellers was just over 9%; by 2025 it had risen to nearly 15%, significantly outpacing regions in the North and Midlands.

Yet it is not all uniform across the capital. More expensive central boroughs like Tower Hamlets, Kensington & Chelsea and Westminster saw particularly high loss rates, in some cases approaching 20 to 30% or more, while comparatively cheaper boroughs fared better.

What This Means for Flat Sellers Right Now

For people considering selling their flat in London today, the message from You and Yours, backed by recent data, is clear:

1. Price realistically: overpricing risks languishing on the market.
2. Understand your market: flats are more affected than houses, and new-build oversupply in parts of the city has increased competition.
3. Manage expectations: if you bought at market peaks in recent years, you may face a sale at a lower price than purchase, even after a long ownership period.
4. Weigh your options: some owners are choosing to extend or improve their property rather than sell at a loss.

As Hamptons' research head noted, none of us can predict exactly when London prices will recover, but near-term forecasts show subdued growth compared with other regions.