Luxury Home Prices in London's Commuter Belt Plummet as Post-Pandemic Boom Ends
Analysis by Investec reveals a significant decline in sale prices for luxury properties in London's commuter belt, signaling the end of the post-pandemic property boom.
Average prices for homes valued at £1 million or more in the commuter belt fell by 9% last year, with the most severe drop in Kent, where houses sold for an average of 9.7% less than the asking price (a reduction of £156,344). The county also experienced the slowest market, with houses taking an average of 121 days to sell.
The slowdown is attributed to the decline in work-from-home arrangements, as office-based working gradually returns to pre-pandemic levels. Data from Remit Consulting shows office occupancy reaching a post-Covid high of 60% of pre-pandemic averages, up from 24% in 2021.
Jamie Freeman of Haringtons UK notes that the return to office-based working, increased commuting costs, and financial burdens such as higher interest rates and stamp duty have dampened demand for luxury homes in the commuter belt.
Despite the price reductions, Nigel Bishop of Recoco Property Search believes sellers are more motivated to close deals and lower asking prices, which could incentivize house hunters to expand their search and accept longer commutes.