HOUSE prices in London’s commuter belt could be hardest hit in the event of a 'no deal' Brexit because it is home to some of the most polarised property markets in the country, it is claimed.

Places like Stevenage, Watford and Hastings are braced to feel the full brunt of a 'no deal' Brexit because the price gap between flats and houses are among the greatest in Britain and have widened the fastest, according to research from property investment platform British Pearl.

It found that the average detached house in Stevenage was 197 per cent more than the average flat at £553,697 vs £186,422.

This was the fifth largest gap anywhere in the UK and had grown 68.2 per cent in five years.

The combination of these two measures makes the Hertfordshire town the most polarised property market in Britain, followed by Watford, Hastings, Rugby, Milton Keynes and Luton.

The price gap between flats and houses in Watford has grown 53.2 per cent to 201.4 per cent, while in Hastings it has widened by 63 per cent to 184.7 per cent.

However, the prospects for rapid depreciation in Britain varies wildly between areas.

British Pearl used the two measures to rank the UK’s towns and cities to identify where investors and buyers would be more likely to see market cooling resulting in prices falling back down.

The firm suggests that its analysis is a warning to landlords, homeowners, first-time buyers and property investors to be wary of where the gaps between different steps on the housing ladder have grown most dramatically ahead of Brexit.

“Parts of the UK property market have made considerable gains, and the relative value of homes in different price bands now poses a serious risk to homeowners and investors in the run-up to March 2019,” said James Newbery, investment manager at British Pearl.

“The fallout from 'no deal' is most likely to be felt hardest in the capital’s commuter belt, where markets have moved too far and too fast. That is bad news for both ordinary investors and homeowners, particularly those who have borrowed to make their purchase.”