The London exodus on display? House prices in commuter towns soar while property values plunge within the capital - use our interactive calculator to find out how much YOURS could be worth
The average UK house price increased by 3.7 per cent to £269,000 in the 12 months to June – an annual rise of £9,000, according to the Office for National Statistics.
This marked an uptick in price growth after a 2.7 per cent annual rise was reported in the 12 months to May. Prices rose by 1.4 per cent in the month from May to June.
Average prices increased to £291,000 (3 per cent) in England, £210,000 (also 3 per cent) in Wales, and £192,000 (6 per cent) in Scotland, in the 12 months to June.
It comes amid cooling interest rates which fell again to 4 per cent this month - and after price inflation was impacted by changes in stamp duty. The threshold at which movers pay the tax dropped from £250,000 to £125,000 at the end of March.
Analysis by online estate agents Purplebricks found the best-performing areas of the UK were in the outer areas of London and nearby commuter towns, five years after the pandemic sparked an exodus of people making the most of working from home.
Homeowners in the Kent commuter town of Tunbridge Wells saw the UK's biggest annual increase with prices up by 13 per cent year-on-year, worth £62,274 - meaning the average property is worth £471,779.
Elmbridge in Surrey and Bromley in South East London, both also popular with commuters, were the second and third best-performing areas in the last 12 months.
Homes in Elmbridge were up 7 per cent compared to June 2024, worth £55,935 and valuing the average at £755,879.
Bromley saw house prices increase 10 per cent over the last year, worth £51,228 and pricing the average home at £539,244.
The outer London boroughs of Richmond upon Thames (up 6 per cent or £51,169) and Kingston upon Thames (up 7 per cent or £40,127) were also in the top five.
But other London boroughs closer to the centre of the capital saw the biggest falls - with Wandsworth suffering the most as it dropped 7 per cent or £47,563 in a year.
Islington fell 5 per cent or £35,053 annually, while City of Westminster was down 3 per cent or £34,166.
Barnet fell 6 per cent or £32,263 and Hackney slipped 5 per cent or £31,080.
However, some areas of London did see a monthly gain between May and June, with Westminster leading the way nationally with a 5 per cent increase or £47,625 gained.
Camden was second in the monthly charts with a 5 per cent rise or £41,175; with City of London in third at 4 per cent or £31,288.
The worst-performing area month-on-month was the London borough of Brent, which fell 3 per cent on £17,867; while Redbridge was second, down 2 per cent or £10,339.
Purplebricks sales director Tom Evans told the Mail: 'The falling interest rates over the year combined with an ever-improving forecast after the Bank of England base rate cut earlier this month should continue to see mortgage rates falling with property prices getting higher.
'We are confident that house prices should keep rising into next year, meaning that by the start of 2026 there is even more money to be made on your property.'
Robert Nichols, managing director of Purplebricks Mortgages, added: 'Now is the best time in a while to be looking to be a first-time buyer.
'Interest rates, especially lower interest rates now mean that mortgage rates will be lowered as more people become eligible for a mortgage which will see house prices rise with excess demand.
'Many buyers who might be sitting on the sidelines with money ready to invest in a starter home should be ready to make this autumn their time to buy.'
Meanwhile, the ONS said average UK monthly private rents increased by 5.9 per cent, to £1,343, in the 12 months to July.
A six-bedroom detached house in Bromley is on the market with Purplebricks for £1.5million
Those looking in London's Richmond can get a ground floor flat with Purplebricks for £699,950
Average rents increased to £1,398 (6.0 per cent) in England, £807 (7.9 per cent) in Wales, and £999 (3.6 per cent) in Scotland, in the 12 months to July.
Separately, the ONS also revealed today that overall UK inflation rose by more than expected in July as demand for summer travel pushed up air fares and food prices continued to climb.
Consumer Prices Index (CPI) inflation increased to 3.8 per cent in July, from 3.6 per cent in June. Most economists had been forecasting inflation to rise to 3.7 per cent.
It means the headline rate remained at the highest level since January 2024, when it hit 4 per cent.
Separate data released by Rightmove on Monday found the average price tag on a home has tumbled by more than £10,000 across the summer, falling by nearly £5,000 month-on-month in August alone.
The property website said that across Britain, the average price of a home coming to market fell by 1.3 per cent, or £4,969, month-on-month in August to stand at £368,740.
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