London has unseated the North East of England to become the area where homeowners face the highest chance of selling their property for less than they paid, according to fresh research.
A Stark Reversal in Regional Fortunes
Analysis conducted by the leading estate agency Hamptons reveals a significant shift in the UK housing landscape. In 2025, an estimated 14.8 per cent of sellers in London parted with their homes at a financial loss. This figure surpasses the 13.9 per cent recorded in the North East and towers over the national average for England and Wales, which stood at 8.7 per cent.
This marks a notable change from historical trends. For years, the North East consistently held the unwanted title of the region with the greatest probability of a loss-making sale. However, robust price growth across northern regions in recent times has strengthened the returns for sellers there, altering the dynamic.
What's Driving London's Slide?
This 'reversal of fortunes' in the capital is not uniform across all property types. The trend is being largely propelled by two key groups: sellers of flats and those who purchased their homes at what subsequently proved to be the peak of the market. For these owners, the challenge of 'trading up' to a larger property has become increasingly difficult.
Despite the rise in loss-making sales in London, the broader picture for England and Wales remains positive for most. The average homeowner across the two nations still achieved a substantial gain, selling their property for £91,260 more than they originally paid last year.
The North-South Gain Divide Narrows
Perhaps one of the most telling insights from the data is the shifting balance of profitability. While absolute gains in the South are often higher due to higher starting prices, northern regions are now seeing proportionally higher gains than their southern counterparts. This indicates a continued rebalancing of the UK's property market, with growth in previously undervalued areas outpacing that in the traditionally dominant South.
The analysis, dated Monday 12 January 2026, underscores a period of transition and regional recalibration within the UK housing sector, with London's market showing new signs of vulnerability for specific segments of sellers.
