House prices along the M25 have gone up by 551% since 1986

House prices in towns close to the 117-mile long M25 have risen by 551% since it was opened 30 years ago.

According to Halifax, the average house price in 40 towns along the M25 has gone up from £59,183 in 1986 to £385,085.

This is an increase of £325,903, the equivalent to an increase of £905 per month for the last 30 years and significantly higher than the £208,163 rise in average house prices nationally.

Barnet in Hertfordshire has recorded the biggest increase with the average price growing jumping by 674% to £539,708.

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).

Since 2011, the average price for all towns has grown by 54%, easily exceeding the UK rise of 42%.

In 34 of the 40 towns surveyed house price growth has been over £100,000 in the past five years, with biggest rises in Chigwell (£275,278), Reigate (£249,450) and Barnet (£213,284).

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.”

Top 10 M25 towns for house price growth since 1986

Source: Halifax, 12 months to September