House price growth in Home Counties 37% greater than national average

Leading prime property finance firm CapitalRise has today published new research that reveals that house prices across the Home Counties rose by £312,749 between 1999 and 2024 – an increase 37% higher than the amount at which the average house price in England grew overall in the same period of 25 years.

The research, conducted using data from HM Land Registry, explored the increase in property prices in the six Home Counties between February 1999 and February 2024.

Surrey was found to have the highest average property value (£497,934) among the Home Counties – just £6,514 behind London (£504,448). It experienced the biggest absolute increase in house prices over the last 25 years (£371,827), though properties in Essex had the largest relative price increase (371%).

The high average property value in Surrey can, in part, be attributed to the growing popularity of prime postcodes in the region. For example, according to Rightmove figures, the ‘GU25’ postcode – also home to the exclusive Wentworth Estate – had an average house price of £1,260,338 over the last year. This is more than double the current average for Surrey as a whole.

Elsewhere in the Home Counties, Buckinghamshire has the second-highest average property price (£446,892) and experienced the third-highest absolute increase in price (£328,978) between 1999 and 2024.

With a move towards more flexible working arrangements and the desire for more space from certain buyers, the Home Counties continue to be an attractive option for discerning city-dwellers deciding to leave the capital. According to a recent study by the Centre for Cities, 59% of London out-movers have relocated to the Greater South East since 2020-21. As such, alternative lenders such as CapitalRise are playing an instrumental role in providing specialist finance to developers responding to this demand for high-end real estate, both in central London and across the wider South East.

CapitalRise, which has originated more than £400 million in prime property development finance, has funded the development of several luxury properties on the high-end Wentworth Estate over recent years. The most recent was a £5m loan for the development of a new 13,000 sq.ft luxury mansion, comprising a master suite and three ensuite double bedrooms, as well as a five-car garage, wine cellar, and cinema room. Through its online platform, the firm allows individual and institutional investors to fund property development loans in desirable areas across London and the Home Counties.

Uma Rajah, CEO and co-founder at CapitalRise, said: “Historically, commentary on the prime property market has focused on central London areas such as Chelsea, Mayfair and Belgravia. While these locations remain cornerstones of this exclusive market, we have seen prime locations gain popularity elsewhere across the South East in the last 25 years. This is particularly true in the Home Counties with Surrey topping the list for the most valuable and biggest price increase, now only a few thousand pounds behind the capital. We have seen first-hand evidence of this at CapitalRise, with our loan book increasingly funding prime properties outside of London.

“One factor driving the trend is the natural constraint on supply in relation to the high demand within the Prime Central London property market. As such, the Home Counties also offer plenty of opportunities for ambitious developers looking to deliver high-end property in the South East. Combined with moves towards more flexible working arrangements, this has also made relocating to the commuter belt more attractive for many professionals working in London, increasing demand for property in these key areas.

“Developers in the high-end residential sector have often struggled to secure the necessary funding though, especially as traditional banks have been forced to retreat from the space due to regulatory changes since the Global Financial Crisis. However, alternative lenders such as CapitalRise have stepped in to fill the gap and continue to support the needs of prime property developers. To date, we have lent against £1bn of prime property assets, financing quality projects in some of the finest postcodes across London and the wider South East.”