House price growth in commuter areas is currently outpacing the cities they encircle, according to new research. This trend was observed across all 12 major UK cities analysed by Yopa, which compared annual house price growth in urban centres with their surrounding commuter belts.
The most significant difference was recorded in London, where prices in the capital fell by 3.7% over the past year. In contrast, values in its commuter belt increased by an average of 0.9%, creating a 4.6 percentage point gap.
Cardiff experienced the second-largest disparity, with city prices rising by 2.9% while its surrounding commuter areas saw average growth of 6.7%. Other cities like Nottingham and Birmingham also showed similar patterns of stronger growth outside their urban centres.
Even in some larger northern cities, commuter areas outperformed. Glasgow's commuter areas recorded 5% average growth compared to 2.5% in the city, and Manchester's surrounding areas saw a 2.7% rise versus 0.5% within the city.
However, the difference was narrower in some locations. Bristol city prices increased by 2.2% compared to 3.2% in surrounding areas, and Liverpool recorded 4.8% growth within the city versus 5.1% in its commuter belt. Leeds had the smallest difference among the cities analysed, with prices rising by 3.7% in the city and 3.8% in surrounding areas.
Verona Frankish, CEO of Yopa, suggested that higher mortgage rates have made buyers more cautious about spending. She noted that while staying within a favourite city might have been feasible with lower mortgage rates, it now comes with a considerably higher monthly cost. Commuter belts can offer an alternative, allowing buyers to remain near cities while potentially securing more home for their money or purchasing at a more suitable price.