DRIVERS will see an end to tolls on the Severn crossings in 2018 but fears remain over house prices being driven up by the move.

Last week, secretary of state for Wales Alun Cairns said, the change would boost the local economy to the tune of £100 million a year – saving the average motorist using the bridges daily more than £1,400 per year.

The minister, who described the tolls as a being a “psychological barrier” as well as a financial one, said: “The decision sends a powerful message to businesses, commuters and tourists alike that the UK Government is committed to strengthening the Welsh economy.

“By ending tolls for the 25 million annual journeys between two nations we will strengthen the links between communities and help to transform the joint economic prospects of South Wales and the South West of England.”

But the move has prompted fresh concerns that house hunters in Bristol, who had previously been priced out of a move by the tolls, will begin to set their sights more firmly on properties in the area.

The average price of a home in the county stands at £242,231 - the most expensive average price for the whole of Wales and experts expect that number to rise as the countdown to the tolls being scrapped begins.

Despite this, properties are still cheaper than many areas in and around Bristol and recent bidding wars in areas like Chepstow have reflected this.

According to Cllr Armand Watts, a house listed in his ward of Bulwark before Christmas sold for tens of thousands of pounds more than its original market price following the announcement in January that tolls would be halved.

He added that all of those bidding on the property, which sold in a single day, were from the Bristol area.

“The area is going to become more cosmopolitan, it’s inevitable,” said Cllr Watts.

“A priority for the local authority has to be to retain our young people, they are the taxpayers of tomorrow and they are being forced out of the area.”

Nathan Reeks, owner of Nathan James estate agents in Caldicot and Magor, said a house in the area with a market listing of £150,000 went for more than £200,000 to a Bristol-based buyer.

“These are people coming from places where you have properties going for around £297,000 for exactly the same house type,” he said.

“I have enormous sympathy for local people – prices will be pushed up to a level that they won’t be able to stay in the area.

“Along with first-time buyers, this will affect growing families looking to make a step up.”

Further pressure will be put on local buyers with housing developments at Mabey Bridge in Chepstow and Sudbrook being approved, with both builds offering nearly 700 homes.

The affordable houses on offer would only be available to buyers who have lived in Monmouthshire for more than six months.

But Mr Reeks warned: “As more people want to buy houses on new-build developments, it will stall the second-hand market.”

Charles Heaven, the owner of Chepstow-based Crown Estate and Letting Agent, said that the area would presently be unable to cope with an influx of buyers due to a lack of properties on the market.

He also expects the rental market to spike over the coming months as young buyers struggle to keep up with cash buyers coming from across the Severn.

“If the people can’t find the houses to buy then they will turn to rental accommodation because there’s still that stigma of wanting to move out as soon as possible,” said Mr Heaven.

“But when they’re paying hundreds in rent, it’s only then that they realise ‘how can I ever afford to save for a house?’”

Monmouthshire County Council leader Cllr Peter Fox admitted that the local authority faces “many challenges”, adding: “I welcome the scrapping of the tolls, it is positive but it’s going to require some big decisions to be made. This area of south Wales will be highly desirable and that will put pressure on our housing supply. We want the growth, the jobs, the benefits of the tolls going but we also want to keep our young people in the area.”