How will the return to office working affect the housing market?

31^st January 2025

Returning to the office

Working patterns have changed. Working from Home massively increased during the pandemic, and the trend has continued with many companies encourgaging flexible/hybrid working. This comes as no surprise to anyone. The impact on the housing market as workers ditched the office and the daily commute for a more flexible work lifestyle was not surprising either – we saw an increase in demand for properties further afield. As Surrey Buying Agents, we saw a huge increase inclients looking to move from Lodnon to Surrey. According to the European Central Bank, larger homes located further away from the city centre saw the fastest growth in UK house prices – with an increase of 20% between Feb 2020 and June 2022.

But the pressure for many Central London office workers to return to the office full-time. Last year, several large companies including Amazon announced strict return to work mandates. So far this year, JPMorgan Chase and ad giant WPP are among the firms that have summoned staff back to the office. Despite backlash from staff, 83% of CEOs expect a full return to office within the next three years, according to a KPMG survey.

So where does this leave the property market?

Well, it’s probably good news for the London Office Property Market – which according to research company MSCI saw values for London Office Property fall by 20% between the second quarter of 2022 and the second quarter of 2024. Some Property Groups had already started to think creatively to soften the impact of the decrease of workers in the office - Canary Wharf for example have adapted some office space to mixed and residential use and developers are adding roof terraces, and other spaces to make the return to work more attractive to employees.

But what about the residential property market? Will we see a reversal of the “escape to the countryside” trend? A “return of the city-dweller”? And more inmportantly where does this leave you if you are considering selling or buying a new home?

Working from Home has opened the Country’s eyes to “Life After London”. But for those considering a move out of London, with the future of hybrid working still unknown, commute times back to London will become increasingly important. Whilst a daily commute of 3-4 hours might be doable one or two days a week, for many, it will quickly become unsustainable when days in the office increase much beyond this. As a result, we’ve found that locations with good transport links are regaining popularity among homebuyers.

It's still too early to know just how many companies will revert back to full-time office working but as many CEO’s continue to recall workers to the office for at least part of the working week, interest in centrally located property and homes with excellent transport links is likely to continue growing.