Hertfordshire emerges as strongest performing London commuter county
New research from UK Property Development reveals that while London property prices fell by more than -3% in the past year, prices in some of the capital’s surrounding counties have enjoyed positive growth, none more so than the premium commuter county of Hertfordshire.
In the past year, London’s average house price has fallen by -3.3% as the capital’s market continues to struggle in a difficult economic environment. But UKPD’s analysis of house price data across the surrounding commuter belt* shows the opposite is happening in several nearby counties.
Between February 2025 and February 2026 (latest available complete data), London’s average house price fell from £561,072 to £542,304. Prices in nearby Berkshire also declined by -1.6%, while Surrey saw a drop of -1.1% and Buckinghamshire fell by -0.8%.
However, prices in Kent grew by 0.1% to reach an average of £345,239, while Essex recorded annual growth of 0.6%, taking the average house price to £358,078.
It is Hertfordshire, however, that has delivered the strongest performance of all the capital’s surrounding counties. Over the last year, average house prices in Hertfordshire increased by 1.5%, climbing from £457,649 to £464,507.
Despite being one of the most expensive commuter counties surrounding London, Hertfordshire remains 14.3% more affordable than the capital itself, while continuing to demonstrate stronger price resilience than many neighbouring markets.
UK Property Development believes the county’s ongoing strength reflects growing demand from higher-end buyers seeking larger homes, premium living standards and strong transport connectivity, while still offering long-term value in an uncertain market.
While affordability pressures and weaker buyer confidence continue to impact parts of London and several traditional commuter hotspots, Hertfordshire has retained its appeal as a prime destination for affluent professionals and families looking to balance access to the capital with lifestyle-driven living.
The county’s combination of desirable market towns, highly-rated schools, green space and fast rail connections into central London has helped support buyer demand at a time when many other high-value markets are seeing downward pressure on pricing.
UK Property Development, commented:
“Hertfordshire has firmly established itself as the premium commuter county for London buyers and the latest house price performance reflects that strength.
While many areas surrounding the capital have struggled to maintain value growth over the last year, Hertfordshire has continued to attract high-quality demand from buyers who are willing to invest in a market that offers both long-term stability and a premium lifestyle proposition.
It is one of the most expensive commuter markets outside London, but that pricing is underpinned by strong fundamentals, consistent demand and a level of resilience that many neighbouring counties have not matched in the current climate.
For us, Hertfordshire was the obvious choice when identifying locations for our latest luxury homes development – St James View in Goff’s Oak. The county continues to attract affluent buyers looking for high-spec family homes within easy reach of London, while also offering the lifestyle advantages that have become increasingly important in recent years.
In an uneven local market, Hertfordshire has continued to outperform, and that makes it one of the most compelling investment locations within the London commuter belt today.”
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