In terms of price growth, rural homes outperform urban ones Where are the skyrocketing home prices?

We examine the rural local authorities that are performing the best in terms of house price growth

There are many reasons to escape to the country, including the fact that life is usually slower there, there is less crime, and the scenery is more beautiful. However, new data indicates that rural residents are also reaping the benefits of rising home prices.

According to Nationwide data, over the past five years, house prices in primarily rural areas have increased by 23%, while those in primarily urban areas have increased by 18%.

Prices in local authorities that were categorized as urban with significant rural areas increased by 22% during that time.

During that period, urban apartments saw the slowest rate of price growth, while terraced properties in rural areas saw the fastest.

Senior economist Andrew Harvey of Nationwide stated: "The average growth in home prices in local authorities that are primarily rural has continued to surpass that of local authorities that are primarily urban.

Our research at the time indicated a shift in preferences towards more rural areas, especially among older age groups, and the pandemic had a significant impact on housing demand during 2021 and 2022.

Less metropolitan areas have maintained their lead in terms of home price growth, even though these effects have since subsided.

In a different post, we examine the top UK cities to call home and their associated costs.

Where are the fastest-rising rural home prices?

In 2024, Tewkesbury, a rural authority in Gloucestershire just north of the Cotswolds, had the best performance, with average prices increasing by 11% to 334,361.

Forty-one percent of respondents who purchased in rural areas did so in a detached home, and another 29 percent purchased a semi-detached home.

The largest price increase, with average prices rising by 25%, has been observed in rural terraced properties between December 2019 and December 2024.

Urban semi-detached prices rose by 24% during the same time period, while rural semi-detached prices rose by 25%. At the same time, detached homes in rural areas grew by 21%.

The price growth of apartments was much slower, especially in primarily urban areas, where it only rose by 6% over the previous five years.

"This data reflects the clear and ongoing shift in buyer behavior post-pandemic," stated Rob Peters, chief executive officer at Simple Fast Mortgage. Even after cities have reopened, demand is still driven by the desire for green space, flexible living, and a better work-life balance.

"Over the last five years, rural terraceswhich are frequently thought of as inexpensive entry pointshave performed exceptionally well.

"A 23 percent increase over five years in rural areas means many locals could be priced out of their own communities, particularly in picturesque but low-wage regions," Peters said, warning that affordability is a concern.

In the meantime, Peters stated that the stagnation in the value of urban apartments "highlights persistent demand imbalances that require resolving through smarter housing policy and better urban infrastructure."

In what locations are people relocating?

In its most recent housing market survey, Nationwide examined homeowners who had moved within the previous five years.

The largest flow was found to be within large towns or cities, with the majority of house moves (63 percent) occurring within the same type of area.

Roughly 9% of relocations were from towns and cities to rural areas (hamlets or villages), though 7% of relocations were from rural to more urban areas.

While older age groups, especially those over 55, preferred more rural areas, younger people (those between the ages of 25 and 34) tended to relocate more to urban areas.

According to our survey data, "the biggest reason given by people who moved in the last five years was a larger property or garden, which may partially reflect the race for space during the pandemic," Harvey said.

In fact, it seems that most home movers traded up, as 33% of survey participants bought a detached home and only 15% bought an apartment.