UK Housing Market: Rural House Prices Outstrip Towns in Great Britain

Countryside semis lead property market with 22% price growth in 5 years. Explore the latest trends in rural real estate.

Rural areas have emerged as the winners in the house price growth race over the past five years, outperforming towns and cities across Great Britain. According to data released by Nationwide, average house prices in predominantly rural areas have surged by 22% during this period, surpassing the 17% growth seen in predominantly urban areas. The standout performer in terms of property type has been the rural semi-detached home.

This trend can be attributed to the "race for space" phenomenon triggered by the pandemic, which prompted a significant number of individuals to seek refuge in rural areas, smaller towns, or coastal regions. The allure of larger gardens, proximity to open spaces, and the availability of more space for remote work have been key drivers behind this migration. However, subsequent research has indicated that some of these individuals have opted to return to the suburbs or cities after their initial move.

Popular rural areas experiencing robust house price growth include tourist hotspots like parts of Devon and the Lake District, suggesting that demand may also be fueled by individuals purchasing holiday homes or second residences. Of the 349 local authorities in Great Britain, the majority (61%) are classified as predominantly urban, while just over a quarter (26%) are predominantly rural.

Among different property types, rural semi-detached homes have seen the most significant price appreciation, with average values increasing by 24% over the five-year period. Rural terraced homes and urban semis have also experienced strong growth, each seeing a 23% increase in value. Rural detached properties closely follow with a 22% growth rate. In contrast, urban flats have shown considerably weaker growth, particularly in predominantly urban areas where prices have only increased by 5%.

The data underscores the shifting preferences of homebuyers towards rural areas and the enduring appeal of spacious, countryside living. The surge in demand for rural properties, driven by the desire for more space and a change in lifestyle, has significantly impacted house price growth trends in Great Britain.