The property boom driven by the remote working revolution appears to be over, with new figures showing house prices rising sharply in London and its commuter belt while once-popular pandemic escape zones are now seeing values fall.
Data analysed by estate agency Purplebricks using the latest House Price Index from the Office for National Statistics reveals that many of the rural and suburban areas that soared in value during the height of lockdown have now lost significant ground.
Areas such as Bath, north-east Somerset, the Cotswolds and South Hams in Devon—popular with city workers seeking gardens, fresh air, and home office space during the height of the work-from-home movement—have seen average property values drop by more than £20,000 over the last year.
These areas were previously among the biggest winners in the post-2020 property surge, with prices climbing by up to 15% between 2019 and 2020 as tens of thousands of Londoners left the capital. But demand has since waned, and the market is adjusting.
In contrast, London’s outer boroughs and commuter hotspots are now driving price growth, reflecting a reversal of pandemic-era trends. Three Rivers in Hertfordshire, bordering the London Borough of Watford, recorded a 13% annual price increase—equivalent to around £79,000.
Other top performers include Kingston upon Thames and Bromley, where prices have jumped by 8–9% year-on-year, adding nearly £50,000 in value on average. Tunbridge Wells, Waltham Forest, Southwark, and Elmbridge also ranked among the top 10 areas for price growth, all within roughly an hour’s commute to central London.
Although central parts of the capital such as the City of London, Westminster, and Islington saw house prices fall earlier in the year, recent data shows a rebound. In June, values in Camden surged by 9%, the City by 8%, and Kensington and Chelsea by 3% in just one month—adding tens of thousands of pounds in a matter of weeks.
Overall, house prices in England have increased by 3.4% in the past year, while prices in Wales and Scotland rose by 5.1% and 6.4%, respectively. The average house price now stands at £290,000 in England, £210,000 in Wales, and £192,000 in Scotland.
According to Purplebricks, falling interest rates and declining mortgage costs are contributing to renewed optimism in the housing market. The Bank of England base rate now stands at 4.25%, down a full percentage point over the past year, with economists widely expecting a further cut when the Bank’s Monetary Policy Committee meets on 7 August.
Tom Evans, Sales Director at Purplebricks, described the current outlook as “great news” for homeowners and first-time buyers alike.
“The falling interest rates over the last 12 months have helped drive down mortgage rates and drive up property prices—and the forecast base rate cut in August should continue that trend.
We are confident house prices will continue to rise into next year, meaning your home at the start of 2026 will be worth more than it is today.”
Robert Nichols, Managing Director of Purplebricks Mortgages, said the Government’s new ‘Helping Hand’ scheme is also boosting market confidence.
“This is the best time to be a first-time buyer in recent years,” he said, referring to the scheme aimed at improving mortgage access for those struggling to get on the property ladder.
The Centre for Cities think tank reported last year that London was already showing early signs of recovery from the pandemic exodus. That recovery now appears to be in full swing.
The latest population estimates from the Office for National Statistics suggest London had 8.945 million residents as of mid-2023, driven in large part by international migration.
With offices refilling, consumer spending rebounding, and housing demand returning to the capital and its fringes, the era of remote-working-fuelled property growth in rural Britain may be drawing to a close.
The “race for space” is giving way to a new chapter—one where proximity to the capital’s resurgent economy, even in the hybrid work era, is once again king.
