Home Counties Correction: Investec reports 9% commuter belt price drop
Luxury homes in London’s commuter belt are now selling for an average of £150,000 below their original asking prices, indicating a shift in the once-thriving home counties property market according to a recent report by financial services provider Investec.
The report reveals that sale prices for properties valued at £1 million or more in the home counties fell by an average of 9% last year.
Kent experienced the most significant reductions, with high-value properties selling for 9.7% less than their listed price. On average, these homes took 121 days to sell, making Kent the slowest-moving market in the region. In contrast, Hertfordshire showed the strongest resilience, with discounts averaging 8.32%.
Carlos Mendes, private banker at Investec, noted:
“A move to the home counties gives buyers the opportunity to maximise the size of their property, often gaining over double the square footage of London homes for the same price. It’s clear that buyers secured exceptional deals last year, with average price reductions exceeding £150,000 compared to the initial asking prices.”
This recalibration comes in stark contrast to the property boom of the pandemic years when values soared by up to 20% in the regions surrounding London. The surge was driven by urban dwellers seeking green spaces and home offices, spurred by remote working trends.
A Bank of England study estimates that shifts in household preferences accounted for nearly 50% of house price growth between early 2020 and December 2021.
While green spaces remain desirable, the return to office-based or hybrid working has limited how far employees can relocate from the capital.
Jamie Freeman, director at property buying advisory firm Haringtons UK, explained:
“The return to office work, coupled with commuting costs, school relocations, higher interest rates, and ongoing stamp duty burdens, has cooled demand. Sellers are having to adjust expectations, reflecting a recalibrated market.”
Freeman added:
“While some sellers still list properties at ambitious prices, the frenzied buying of 2021 and 2022 is over. The home counties will always attract buyers, but the days of skyrocketing prices are behind us. The market is entering a more balanced and realistic phase.”
Investec’s analysis reviewed over 22,000 homes listed for £1 million or more across nine regions. Surrey emerged as the priciest, with an average prime property price of £1.55 million—£200,000 higher than East Sussex, the most affordable county in the study.
For those seeking luxury in the home counties, the shift offers opportunities to secure exceptional value, as the market redefines its equilibrium.
Contact OQO London to help you uncover Home Counties opportunities.
