A recent Rightmove analysis shows house prices falling in parts of the London commuter belt, opening a window of opportunity for Canadian and American investors seeking overseas property. House prices in London commuter hotspots are decreasing, creating opportunities for buyers who may previously have been priced out, a property website has said.
Price trends in the London commuter belt
Looking at annual changes in average asking prices in July, researchers found that in the capital, prices have decreased annually by 3.1% (£646,451). Haywards Heath in Sussex recorded the largest annual asking price decline in the analysis, down 4.8% to reach £461,066, followed by Maidenhead with a 3.9% fall.
Reading, Berkshire, came in fifth in the ranking, with the average house price down to £377,211, and Billericay, Essex, coming in just behind, with a 2.8% drop. However, there was one exception to the rule. In Broxbourne, Hertfordshire, house prices have surged by 8.7%, with the average property costing £654,263.
Colleen Babcock, a property expert at Rightmove, said the price drop would be welcome news to hopeful London commuter belt buyers. "Some of the more expensive commuter hotspots are seeing prices ease, which could create opportunities for buyers who may previously have been priced out," she explained.
Canadian buyers have long looked to the UK as a stable investment, and a softer market could make purchases more affordable. Likewise, US investors are attracted by the UK's legal transparency and the appeal of owning a second home near London. For Canadians and Americans, the price decline may also affect mortgage financing options, as lenders consider the lower valuations.
Growth in northern commuter markets
Average asking prices were up 1.8% in Manchester (£261,212) in contrast to London, affordable commuter locations around Glasgow and Manchester have resulted in a growth in asking prices. Average asking prices were up by 2.9% annually in Glasgow (£191,530), 1.8% in Manchester (£261,212) and 1.4% in Cardiff (£285,596).
Propertymark president Ian Harris said, "Since the pandemic, we've seen an initial reformatting of what many people want and need from the location they choose to live in. Initially, we saw many people embrace the concept of working from home and enjoying a lifestyle away from the traditional city commute. However, this is now a trend that is starting to swing back, with many people looking for a hybrid location that offers easy commuter access to key cities, while also providing a desirable mix of out‑of‑city amenities."
Rightmove's research looked at commuter areas surrounding the six cities only, not every commuter location in Britain.
- Haywards Heath, West Sussex, London, £461,066, minus 4.8%
- Maidenhead, Berkshire, London, £571,686, minus 3.9%
- Bath, Somerset, Bristol, £508,109, minus 3.8%
- Leamington Spa, Warwickshire, Birmingham, £369,612, minus 3.3%
- Reading, Berkshire, London, £377,211, minus 2.9%
- Billericay, Essex, London, £558,087, minus 2.8%
- Yate, Bristol, Bristol, £331,921, minus 2.3%
- Slough, Berkshire, London, £405,182, minus 2.2%
- Chelmsford, Essex, London, £402,836, minus 2.1%
- Basingstoke, Hampshire, London, £353,642, minus 1.9%
- Woking, Surrey, London, £509,550, minus 1.7%
- Tonbridge, Kent, London, £483,362, minus 1.5%
- Redhill, Surrey, London, £426,481, minus 1.3%
- Brentwood, Essex, London, £559,908, minus 1.2%
- Caerphilly, Cardiff, £251,142, minus 1.2%
- Falkirk, Stirlingshire, Glasgow, £183,596, 13.5%
- Rochdale, Greater Manchester, Manchester, £238,115, 8.7%
- Broxbourne, Hertfordshire, London, £654,263, 8.1%
- St Helens, Merseyside, Manchester, £192,570, 7.8%
- Port Talbot, Neath Port Talbot, Cardiff, £176,787, 7.7%
- Wishaw, Lanarkshire, Glasgow, £140,127, 7.0%
- Wigan, Greater Manchester, Manchester, £193,347, 6.2%
- Stalybridge, Greater Manchester, Manchester, £265,378, 5.6%
- Greenock, Inverclyde, Glasgow, £135,151, 5.3%
- Hamilton, Lanarkshire, Glasgow, £174,869, 5.3%
- Wolverhampton, West Midlands, Birmingham, £230,737, 5.2%
- Barry, Vale of Glamorgan, Cardiff, £261,859, 5.2%
- East Kilbride, South Lanarkshire, Glasgow, £174,348, 5.1%
- Dumbarton, Dunbartonshire, Glasgow, £168,045, 5.0%
- Penarth, South Glamorgan, Cardiff, £432,414, 4.7%
Falkirk in Stirlingshire had the highest price growth in the research, at 13.5%, with an average asking price of £183,596. Babcock said Rightmove's data "highlights two very different stories playing out across some of Britain's commuter markets". "In the more affordable locations around Glasgow and Manchester, asking prices are rising strongly as buyers look for value within reach of major cities."