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M25 house prices more than six times higher than 30 years ago

Joanna Faith
Written By:
Joanna Faith

Average house prices in towns near the M25 have grown by £326,000 (551%) since it opened 30 years ago, according to Halifax.

This represents a massive monthly increase of £905, or an annual rise of £10,863, dwarfing the Retail Prices Index increase of 169% over the same period.

The average house price in 40 towns, spanning eight counties, close to the 117-mile London Orbital Motorway has grown from £59,183 in 1986 to £385,085.

This £325,903 increase has significantly exceeded the £208,163 rise in average house prices nationally (from £37,763 to £245,926) over the same period by £117,740 (or 57%). In percentage terms, the increase was identical to the national rise, at 551%.

Martin Ellis, housing economist at Halifax, said: “House prices in towns close to the M25 have grown significantly since the official opening of the motorway in 1986. In terms of average values, the most expensive towns close to the London Orbital are in the southern section of the motorway and on the north side, while towns east of London typically have the lowest prices.

“Towns have, on average, outperformed the South East region as a whole with an average price £52,000 higher, yet prices have failed to keep pace with the dramatic rise in property values in the capital over the past three decades. As a result, towns around the M25 are now typically significantly lower than in London despite being on a par when the motorway opened.”

Boom towns around the M25

Barnet in Hertfordshire has recorded the biggest increase with the average price growing eight-fold from £69,744 to £539,708 – an increase of £469,964 (or 674%). The next largest rise has been in Rickmansworth, Hertfordshire where the average value has grown by £468,448, followed by the Surrey towns of Reigate (£458,734) and Leatherhead (£443,034), St Albans in Hertfordshire (£434,438), Chigwell in Essex (£426,255) and Epsom in Surrey (£422,626).

Eight of the 10 least expensive towns are on the eastern section of the M25 (junctions 29 to 31 and 1) in Essex and north Kent. The least expensive are South Ockendon (£258,569), Grays (£268,195) and Erith (£276,127).