Report shows 37% rise over national average
When Uma Rajah left a career in designing packaging for confectionary giant Mars, many colleagues may have been surprised to hear that she would eventually go on to found property lending portal Capitalrise. The company that she helped found nine years ago, however appears to be going from strength to strength, and has just released new ‘findings’ that house prices in the Home Counties have outperformed the rest of the UK, having increased by an average of £312,749 between 1999 and 2024.
According to the mortgage lenders calculations, this represents a growth 37% higher than the national average for the country as a whole during the same 25-year period. The data, drawn from HM Land Registry, examines property price trends across Surrey, Buckinghamshire, Hertfordshire, Berkshire, Essex, and Kent.
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Surrey leads the Home Counties with an average property value of £497,934, just shy of London's £504,448 average. Surrey also saw the highest absolute price increase of £371,827, though Essex recorded the most significant percentage jump, with property values rising by 371%. The popularity of prime postcodes such as GU25, home to the exclusive Wentworth Estate, has contributed to Surrey’s high prices, with properties in the area averaging £1.26 million over the last year.
The growing demand for homes in the commuter belt reflects broader trends in working preferences. Flexible working arrangements have prompted many Londoners to relocate, with 59% of out-movers since 2020 opting for the Greater South East, according to a Centre for Cities study. CapitalRise has targeted growth by facilitating lending for high-end property development to meet this demand, not just in London but increasingly in the Home Counties.
The Home Counties now represent one of the fastest-growing regions for CapitalRise's loan book, a trend that helped the company's record-breaking month of originations in July. CapitalRise reported nearly £50 million worth of loans agreed during the month, bringing its cumulative lending to over £400 million.
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The platform’s loan book has expanded significantly, with a 32% year-on-year growth, although specific figures were not disclosed. CEO Uma Rajah lauded the company’s recent success, saying, “Throughout the volatility of the past 12 months, our team has shown great flexibility, resilience, and creativity... and their efforts are reflected in these results.”
Historically, CapitalRise has focused its lending on properties in Prime Central London, including high-demand areas like Chelsea and Mayfair. However, the firm has shifted its attention to the wider South East, where nearly a quarter of July’s loans were dedicated to developments in the Home Counties. The platform’s expansion has been fuelled by several new funding lines secured earlier this year, including a £250 million facility in January, a 50% increase in an existing line in March, and a £30 million line added in June.
Rajah highlighted how alternative lenders like CapitalRise are filling a critical gap in the high-end development finance market. Traditional banks have retreated from the sector, particularly after the Global Financial Crisis, making it harder for developers to secure funding for luxury projects. “One factor driving the trend is the natural constraint on supply in relation to the high demand within the Prime Central London property market,” Rajah explained. She added, “Developers in the high-end residential sector have often struggled to secure the necessary funding... however, alternative lenders such as CapitalRise have stepped in to fill the gap.”
The firm has financed several prime property projects in the Home Counties, including a recent £5 million loan for the development of a 13,000 sq.ft mansion on the Wentworth Estate, featuring luxurious amenities like a wine cellar, cinema room, and a five-car garage. CapitalRise’s online platform enables both individual and institutional investors to contribute to these exclusive developments in sought-after areas across London and the South East.
With house prices continuing to rise and demand from city-dwellers remaining strong, the Home Counties are set to remain a key focus for developers, bolstered by the support of alternative finance platforms like CapitalRise. As Rajah summed up, “As the wider macroeconomic environment shows signs of settling, I welcome the coming year where we hope to continue to build on these successes.”
