London Leads England and Wales in Home Seller Losses 2025

London has overtaken the North East of England as the region in England and Wales where home sellers are most likely to incur a loss, according to analysis of 2025 property transactions. The shift marks a notable reversal in regional housing fortunes, with 14.8 percent of London sellers receiving less than their original purchase price, exceeding the national average of 8.7 percent.

The findings, drawn from Land Registry data, highlight how recent economic pressures and market dynamics have altered outcomes for homeowners. In London, the trend stems largely from sales of flats, which accounted for the majority of loss-making transactions. Flat sellers faced more than six times the risk of a loss compared to those selling houses, influenced by factors such as rising ground rents, high service charges and stricter regulations on buy-to-let investments. Overall, London property prices declined by 1.3 percent in 2025, averaging 539,086 pounds, the highest in the UK but down from previous years.

Historically, the North East held the unwelcome top position for nine of the past 10 years, with nearly 30 percent of sellers there making a loss as recently as 2019, compared to just 9.2...