Wealthy commuter towns weighed down by London's failing housing market

London Commuter Towns Experience Significant Property Value Drops

House prices in several London commuter towns have seen a notable decline, with some areas losing up to £36,000 in value over the past year. According to new data from Lloyds Bank, properties in Crawley, High Wycombe, and Brighton have all experienced an average drop of 4.8% between October 2024 and October 2025.

Crawley, located 28 miles south of London, was the most affected, with house prices falling by 8.9%. This marks a significant shift for the area, which had previously shown strong growth. The overall South East region saw only a modest 0.8% increase in property prices this year, compared to 3.6% in Yorkshire. Northern Ireland led the way with a 5.8% rise in prices, while London was the only region where prices fell overall, by 0.1%.

Nigel Bishop, from the buying agency Recoco, highlighted that the London market has struggled, which has had a ripple effect on surrounding areas. "Brighton, High Wycombe – their economies are dictated by London," he said. The impact of the recent Budget also played a role, with many homeowners delaying moves due to fears of tax increases or seeking more affordable homes.

Impact of the Budget on the London Property Market

The Budget introduced several changes that have affected the London property market. Homeowners are now at greater risk of paying higher stamp duty and the new "mansion tax," a council tax surcharge. These additional costs have made moving more expensive for those living in the capital.

According to figures from estate agency Hamptons, one in seven London homeowners who sold their property in 2025 made less than they paid for it. This is significantly higher than the national average of 8.7% of sellers. The situation has created a challenging environment for buyers and sellers alike.

In contrast, other regions such as the North West, the Midlands, and Yorkshire have seen positive growth. Stafford and Wigan recorded double-digit increases of 12% and 10.5%, respectively. Amanda Bryden of Lloyds noted that northern regions and Scotland remain more affordable, offering a range of cultural and historical attractions alongside beautiful countryside.

Plymouth's Remarkable Growth

Plymouth has emerged as a standout performer, with house prices rising by 12.6% this year. On average, property values have increased by more than £31,000. Mr Bishop attributed this growth to substantial infrastructure investments and improved retail, sporting, culinary, and lifestyle amenities. These factors have made Plymouth an attractive option for homebuyers of all ages.

Key London Commuter Towns Affected

Brighton

Despite being a popular tourist destination, Brighton has seen a decline in property prices. Average house prices fell from £425,129 to £404,875, a drop of over £20,000. The decline coincided with the sale of Brighton Pier, which faced financial challenges due to increased operational costs, including the National Living Wage and National Insurance.

High Wycombe

High Wycombe, a half-hour train ride from London, experienced a 7.4% drop in property values this year. The average price fell from £471,373 to £436,379. Mr Bishop pointed out that the rising cost of season tickets and other commuting expenses have made moving less appealing for many residents.

Nick Maud of Savills added that the cost of the average season ticket has increased by 12% over the last year, outpacing house price growth. However, he still sees value in living in commuter hotspots despite the rising costs.

Crawley

Crawley suffered the largest drop in home values, with an average loss of £36,317. Property prices fell by 8.9% from £408,519 in 2024 to £372,202 in 2025. Heidi Alexander, the Transport Secretary, approved plans for a second runway at nearby Gatwick Airport, which could lead to increased traffic and pollution in the area.

Play The Telegraph’s brilliant range of Puzzles - and feel brighter every day. Train your brain and boost your mood with PlusWord, the Mini Crossword, the fearsome Killer Sudoku and even the classic Cryptic Crossword.