Since the pandemic reshaped how we work, the shift in where people want to live has been one of the most significant changes I’ve seen in the UK property market. Data from the European Central Bank shows that between February 2020 and June 2022, the average price of large houses with five rooms or more increased by 20%, while small studio flats dropped by 1%. That tells you something fundamental has changed about what buyers actually need from a home.
I’ve been watching this trend closely for a few years now, and it keeps coming up in conversations with buyers who are trying to figure out whether their money is better spent on a city-centre flat or a house further out with room to work. The old rules about location being everything have shifted. A guide to climbing the property ladder used to focus almost entirely on getting into the right postcode. Now, the right postcode might be one with a spare bedroom and a decent broadband connection. Here’s what you actually need to know.
How remote work has reshaped what buyers value in a home
The most important consequence of this shift is that the space premium — the extra cost of buying a larger home — has become a defining feature of the market. Before the pandemic, upgrading from an average-sized house of 86 square metres to a larger one of 102 square metres cost about £79,000. After the rise in remote work, that same upgrade costs £83,000. That £4,000 increase is the market telling you that extra space is no longer a nice-to-have; it’s a necessity for anyone who works from home even part of the time.
What I tend to notice when talking to buyers is that many still think in terms of the old commuter model — closer to the station, shorter journey, higher price. But the data tells a different story. The commuting penalty, which is the price discount applied to homes further from the city centre, has actually decreased by 6%. That means the financial disadvantage of living in the suburbs has shrunk. Before remote work became widespread, the average suburban home beyond Zone 2 was £107,000 cheaper than a comparable central London property. Now that gap is £100,000. The market is effectively saying that living further out costs you less in lost value than it used to, because people don’t need to commute as often.
Why this matters for your next move
If you’re planning to buy or sell in the next couple of years, these changes have real consequences for your budget and your options. The modernisation of UK housing isn’t just about new builds — it’s about what existing homes need to offer to stay desirable. A two-bedroom flat in a city centre might have been a solid investment five years ago. Today, it faces slower demand because buyers who can work remotely are prioritising gardens, home offices, and extra bedrooms.
Consider this scenario: a couple who both work hybrid jobs, each spending three days at home. They need two separate workspaces, plus a living area that doesn’t double as an office. That means a three-bedroom house at minimum. In the past, they might have stretched for a two-bedroom flat near the office and accepted the compromise. Now, they’re looking at suburban towns like Reading, Guildford, or Chelmsford, where property prices have risen strongly as remote workers seek that balance of space and occasional access to London.
There’s also a less visible consequence that I think deserves more attention. The European Central Bank’s research shows that workers who can regularly work from home now have roughly 2.5 times the housing wealth of those who cannot, up from about twice as much before the pandemic. That widening gap means the ability to work remotely is becoming a factor in housing inequality. If you’re in a job that requires your physical presence — retail, hospitality, healthcare — you’re competing in a market where prices in desirable suburban and rural areas have risen faster than your likely wage growth. That’s not a reason to panic, but it is a reason to be strategic about where and what you buy.
Where buyers and sellers are getting it wrong
The most common mistake I see is assuming that the shift to remote work is temporary or that city centres will bounce back to their old dominance. The data suggests otherwise. Over 60% of UK employers now offer hybrid working, and most workers spend 2–3 days at home. That’s not a blip — it’s a structural change in how the housing market functions.
Overpaying for a city-centre flat without home office potential
Small city-centre apartments have seen the weakest demand since 2020. The ECB data shows that studio and one-room properties actually dropped in value by 1% between February 2020 and June 2022, while larger homes rose 20%. If you’re buying a one-bedroom flat in a city centre, you need to be confident that it has some feature — a separate dining area that could become a desk space, good soundproofing, or a layout that allows for a dedicated work corner — that makes it viable for hybrid living. Without that, you may struggle to sell it later.
Ignoring broadband infrastructure when choosing a location
This one comes up more than you’d expect. Buyers fall in love with a period cottage in a rural village without checking whether the internet connection can handle video calls. Properties with good broadband now command a premium, and for good reason. If you’re working from home even two days a week, a slow or unreliable connection is a dealbreaker. Before you make an offer, check the available speeds on a site like Thinkbroadband or ask the seller directly. If the area has full fibre, that’s a strong selling point. If it doesn’t, factor in the cost and hassle of getting it installed.
Underestimating the cost of converting a home for remote work
Many buyers assume they can just set up a desk in the corner of the living room and call it a home office. That works for occasional use, but if you’re working from home regularly, you need a space that’s separate from your living area. Converting a garage, loft, or spare room can cost anywhere from a few hundred pounds for basic furniture to several thousand for a full conversion. A video doorbell might help with security if you’re home alone during the day, but the bigger investment is in the workspace itself. If you’re buying a property that doesn’t already have a dedicated room you can use as an office, budget for that work upfront.
Assuming the London exodus is over
There’s a narrative that everyone who left London during the pandemic has now returned. The data doesn’t support that. Migration from London to commuter belt areas within one to two hours of the city has remained strong, and regional cities like Manchester, Birmingham, and Leeds have continued to attract buyers seeking better value and larger properties. The pattern isn’t a temporary rush — it’s a lasting redistribution of demand. If you’re selling in a commuter town, you’re still in a strong position. If you’re buying in a regional city, you’re competing with people who might previously have looked only at London.
→ Scroll right to see all columns
| Property type | Price change (Feb 2020 – Jun 2022) | What it means |
|---|---|---|
| Large houses (5+ rooms) | +20% | Strongest growth; buyers prioritising space |
| Studio / one-room flats | −1% | Weakest demand; limited home office potential |
| Central London properties | −1% | Reduced commuter demand |
| London periphery properties | +13% | Suburban shift driven by remote work |
How to make the right property decision in a remote-work market
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The key is to stop thinking about location in the old way — as a trade-off between commute time and house size — and start thinking about it as a trade-off between space, connectivity, and lifestyle. Here are the practical steps I’d take if I were buying today.
Prioritise properties with a dedicated home office or the potential to create one
This is the single most important factor. A property that already has a spare bedroom, a converted loft, or a garden office is worth more now than it was five years ago. If you’re looking at a house that doesn’t have one, ask yourself whether you can create a workspace without sacrificing a living area. A dining room can work if it’s large enough, but you need to be honest about whether you’ll want to eat every meal in the kitchen. If the answer is no, keep looking. A security camera can help you keep an eye on your home office equipment if you’re away, but the room itself is the non-negotiable.
Look beyond the traditional commuter belt
Areas within one to two hours of London — Reading, Guildford, St Albans, Chelmsford — have already seen strong price growth. But the next wave of demand is likely to hit towns that are slightly further out or less well-known, where prices haven’t yet fully adjusted. If you’re willing to trade a slightly longer train journey for significantly more space, you can still find value. The key is to check the train frequency and journey time to your nearest city, and to verify that the broadband infrastructure is up to standard. If you only need to commute two days a week, an extra 30 minutes each way is a small price for an extra bedroom and a garden.
Consider regional cities as a long-term base
Manchester, Birmingham, Leeds, and Bristol have all seen strong demand from remote workers relocating from London. These cities offer better value for money, larger properties, and growing job markets. If you’re able to work remotely most of the time, moving to a regional city can give you a quality of life that would be unaffordable in the capital. The trade-off is that you’ll need to travel to London occasionally for meetings, but for many people, that’s a manageable cost. Before you move, spend a weekend in the city you’re considering. Walk around the neighbourhoods you’re interested in. Check the local amenities, transport links, and broadband speeds. A strategy to hedge against property market volatility often involves diversifying across regions, and this is one way to do it.
Factor in the widening wealth gap between remote and non-remote workers
This is the emerging angle that I think will matter most in the next few years. The ECB’s research shows that the housing wealth of remote workers is now 2.5 times that of workers who cannot work from home, up from 2 times before the pandemic. That gap is likely to grow as remote workers continue to outbid others for larger homes in desirable areas. If you’re in a job that requires your physical presence, you need to be even more strategic. Look for areas that offer good value but haven’t yet been discovered by the remote-work crowd. Consider smaller towns or less fashionable suburbs where prices are still reasonable. And if you can, try to increase your income or savings rate to keep pace with the market. A financial advisor can help you model different scenarios and figure out what’s realistic for your situation.
Frequently asked questions
Is it still worth buying a city-centre flat? ▾
How much more should I expect to pay for a home with a dedicated office? ▾
Are rural areas still a good investment for remote workers? ▾
What happens to property values if employers mandate a return to the office? ▾
How does remote work affect first-time buyers differently? ▾
Should I convert my garage or loft into a home office before selling? ▾
Sources and Further Reading
Negotiating the best deal: insider tips for UK property buyers — Practical advice on how to approach negotiations in a market where remote work has shifted the balance of power between buyers and sellers.
Why the UK real estate market is still attractive despite economic fears — A broader look at the factors keeping the market resilient, including the structural changes driven by remote work.
Changes in the London housing market since the rise in working from home. European Central Bank, 2025.
Remote work impact on the UK property market: a complete guide. HomeMove, 2025.
Public opinions and social trends: working arrangements in Great Britain. Office for National Statistics, 2026.
