The remote worker bubble bursts: House prices in London and commuter towns soar while WFH hotspots drop in value – use our interactive calculator to find out how much YOURS is worth

The remote working boom is over, property experts have suggested, amid an increase in value of homes in and around London and a drop elsewhere.

Property prices outside of the capital exploded at the onset of the coronavirus pandemic as employers embraced remote working practices and emboldened workers sought out gardens and home office spaces.

Demand for suburban and rural property exploded as people fled city centres for pastures greener – but estate agent Purplebricks says some these areas have seen tens of thousands of pounds wiped from the value of homes in recent months.

Official house price index figures from the Office for National Statistics analysed by the online agency suggest properties in Bath, north-east Somerset, the Cotswolds and South Hams in Devon lost the most value over the 12 months to May.

These were thought to be some of the most desirable havens for the 75,000 people thought to have fled London during the pandemic seeking peace and quiet – among them childless professionals likely working from home.

Property prices shot up between five and 15 per cent in these areas between 2019 and 2020 – but more than £20,000 has been skimmed from house valuations over the last year as demand has waned.

On the other hand, demand has exploded in areas of London’s commuter belt – or on the outer verges of the capital itself.

MailOnline’s exclusive calculator (below) shows how values have changed in these areas and every area across the UK – select your area in the drop-down box to find out how prices have changed where you are. 

Prices in Three Rivers, Hertfordshire (Rickmansworth, pictured) have risen 13 per cent in the last year. Parts of the area can reach London by train in under an hour

This particular lockside property is in Rickmansworth, on the market for £500,000 – and is described as ideal for first-time buyers and commuters

Three Rivers in Hertfordshire – touching the outer London borough of Watford – has seen values explode by 13 per cent, or around £79,000 on average. 

Kingston-Upon-Thames and Bromley have seen prices surge eight and nine per cent respectively – around £48,000 each – over the last year.

Other areas in the top 10 annual price rise table include Tunbridge Wells, Waltham Forest, Southwark and Elmbridge – all within an hour of central London by train.

Values fell across the year in some central parts of the capital, including the City of London, Westminster, Islington and Hammersmith and Fulham. 

But they have rebounded in the short-term, with values in Camden, the City of London and Kensington and Chelsea rising nine, eight and three percent in the last month, adding tens of thousands of pounds in value in a matter of weeks.

Overall, house prices in England have risen by 3.4 per cent in the last year; 5.1 per cent in Wales and 6.4 per cent in Scotland.

Average house prices across the three home nations stand at £290,000, £210,000 and £192,000, respectively.

Purplebricks says the dipping prices outside of London and continuingly falling interest rates  were creating a promising market.

The base rate of 4.25 per cent, as set by the Bank of England, is down one percentage point over the last year. Leading economists expect a further rate cut at the Bank’s next meeting on August 7.

Another big winner is Kingston-Upon-Thames, where prices have risen by eight per cent in the last year. This two-bed terraced home is £625,000

The house is close to Kingston train station, less than half an hour from central London, but with the comforts of suburbia

Home values in Bromley have risen nine per cent in the last year. This three-bed end-of-terrace home is on the market for £685,000

Located in the borough’s desirable Shortlands village, it is described as being ideal for ‘growing families’ and is opposite the train station

Tom Evans, sales director, said: ‘Great news once again for the nation’s homeowners, and at a promising time for first-time buyers too.

‘The falling interest rates over the last 12 months has 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, added that the Government’s ‘Helping Hand’ scheme opening up more mortgages to first-time buyers would drive more movement in the market.

He added: ‘This is the best time to be a first-time buyer in recent years.’

Last year, the Centre for Cities think tank said there were early signs the capital was ‘bouncing back’ from the Covid exodus.

The research group says it is confident the population in London has surged past pre-pandemic levels. 

Official estimates suggest the capital was home to 8.945million people as of mid-2023, largely driven by international migration, according to the ONS.