House prices soar as remote work property booms end in London and commuter towns
The property boom driven by the distant work revolution seems to have ended, with new figures showing house prices in London and its commuter belts soaring, while once-in-combat escape zones are now seeing a drop in values.
Real estate brokerage firms use data from the National Bureau of Statistics’ latest home price index analysis to show that many rural and suburban areas that soared during the lockdown peak have now lost their status.
In areas like Devon, Bath, Northeast Somerset, Cotswolds and South Ham, city workers are looking for gardens, fresh air and home office spaces – the average property value fell by more than £20,000 last year.
These regions were formerly one of the biggest winners in the post-2020 real estate surge, with prices rising 15% between 2019 and 2020 as thousands of Londoners left the capital. But since then demand has gradually declined and the market is adjusting.
In contrast, London’s outtowns and commuter hotspots are now driving price growth, reflecting trends in the pandemic era. Three rivers in Hertfordshire border the London Borough in Watford, and their age has increased by 13 per cent, equivalent to about £79,000.
Other best performers include Thames and Kingston in Bromley, with prices rising 8-9% year-on-year, increasing the value by an average of nearly £50,000. Tunbridge Wells, Waltham Forest, Southwark and Elmbridge are also ranked in the top 10 regions where price growth is about an hour of commuting in central London.
Although house prices in central parts of the capital, such as the City of London, Westminster and Islington, fell earlier this year, recent data showed a rebound. In June, Camden’s value surged 9%, New York City’s value grew 3% in just one month, Kensington and Chelsea’s value rose 3%, adding tens of thousands of pounds in weeks.
Overall, over the past year, home prices in England have risen by 3.4%, while prices in Wales and Scotland have risen by 5.1% and 6.4% respectively. Now, the average house price in England is £290,000, Wales is £210,000 and in Scotland it is £192,000.
According to Purplebricks, falling interest rates and lower mortgage costs will contribute to new optimism in the housing market. The Bank of England’s base rate is now 4.25%, down one full percentage point in the past year, with economists generally expecting the bank’s monetary policy committee to cut further when it meets on August 7.
Tom Evans, sales director at Purplebricks, described the current outlook as “good news” for homeowners and first-time home buyers.
“The decline in interest rates over the past 12 months has helped lower mortgage rates and raise property prices, while the forecast for August’s base rate reduction should continue this trend.
We are confident that housing prices will continue to rise into next year, which means your home will be worth more in early 2026 than today. ”
Robert Nichols, managing director of Purplebricks mortgages, said the government’s new “helpers” program is also increasing market confidence.
“This is the best time to be a first-time buyer in recent years,” he said, referring to the program, aiming to improve mortgage access for those struggling to compete ladders.
The city think tank reported last year that London had shown early signs of recovery from the pandemic’s Outer Egypt. Now, this recovery seems to be in full swing.
The latest population estimates from the National Bureau of Statistics show that London has 8.945 million residents as of mid-2023, which is largely driven by international migration.
As offices are replenished, consumer spending rebounds and housing demand returns to the capital and its edge, the era of distant real estate growth in rural Britain may end.
The “Space Race” is giving way to a new chapter – even in the age of hybrid work, the distance to the resurrected economy of the capital is once again the king.
