Blog | Magnate Assets

The Home Counties: A Hidden Gem for UK Property Investors with 37% Higher Capital Appreciation

Written by Magnate Assets | Oct 24, 2024

In a recent analysis, a financial firm revealed that parts of the UK, particularly the Home Counties, have seen exceptional capital appreciation, outpacing the national average by 37% over the past 25 years. According to data from CapitalRise, house prices in the Home Counties surged by an impressive £312,749 between 1999 and 2024, making it a hotspot for property investors—especially those eyeing significant long-term growth.

Capital Growth in Key Home Counties

Using Land Registry data, the report highlighted that several counties in the South East have enjoyed substantial property price increases. Here are the key numbers:

Surrey leads the pack with the highest average property value, currently sitting at £497,934—just slightly behind London’s £504,448. Surrey also saw the largest absolute price increase of £371,827 over the last 25 years. On the other hand, Essex had the most significant percentage increase, with prices rising by an astounding 371%.

Why Are Prices Soaring in the Home Counties?

Several factors contribute to the rise in property prices across the Home Counties. The growing appeal of prime postcodes in Surrey, like the exclusive Wentworth Estate (postcode GU25), has driven up the average house price to £1.26 million, more than double the county's average. As property prices in Central London have soared, wealthy buyers and developers are increasingly looking beyond the capital for high-end investments.

Uma Rajah, Chief Executive at CapitalRise, notes, “Traditionally, the prime property market has focused on areas like Chelsea, Mayfair, and Belgravia. However, over the last 25 years, we’ve seen more prime locations emerge in the South East, especially in the Home Counties. Surrey now ranks among the most valuable property areas, just behind London.”

The Appeal for Investors

For overseas property investors, the Home Counties present an attractive alternative to London. These areas are experiencing significant demand from professionals relocating to the commuter belt due to flexible working arrangements. With its proximity to the capital and booming property market, the Home Counties offer promising opportunities for ambitious investors and developers.

Rajah explains, “The limited supply in Prime Central London has pushed high-end buyers to seek opportunities in the surrounding counties. For investors looking to capitalise on the UK's property market, the Home Counties offer strong potential for capital appreciation and high-end property development.”

Conclusion

With house prices in the Home Counties growing at a rate that outstrips the national average, investors are looking beyond London for prime property investments. As demand continues to rise in these affluent regions, now is the perfect time for overseas investors to explore the untapped potential of the UK’s hidden gems. Whether it's for long-term capital growth or immediate investment returns, the Home Counties are proving to be a valuable addition to any UK property portfolio.