House prices on the M25 road surrounding London have increased by 54% in the last five years – exceeding the 42% rise for the UK as a whole, Halifax research has found.
Eight in 10 towns have seen house price growth of more than £100,000, with the biggest increases being in Chigwell (£275,278), Reigate (£249,450) and Barnet (£213,284).
Rickmansworth is the most expensive town with an average house price of £551,959, with other pricey locations are Reigate (£532,352), Leatherhead (£530,759) and St Albans (£501,634).
Price rises on the M25 are nothing compared to those in London itself however, as prices in the capital are 32% higher than on the M25. In 1986, 30 years ago, towns on the M25 were 0.6% more expensive than London.
Martin Ellis, housing economist at Halifax, said: “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.”