A finance firm has identified a part of the UK where capital appreciation over the past 25 years has been 37% above the average.

CapitalRise says Land Registry data shows typical house prices across the Home Counties rose by £312,749 between 1999 and 2024 – over a third higher than the amount at which the average house price in England grew overall in the same period of 25 years.

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 finance firm says 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, 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.

Uma Rajah, chief executive at CapitalRise, says: “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.”