Rural House Prices in Great Britain Grow Faster Than in Urban Areas

House prices in rural areas of Great Britain have outpaced those in towns and cities over the past five years, with countryside semi-detached homes showing the highest increase, according to data from Nationwide. The average house prices in predominantly rural areas rose by 22% compared to a 17% increase in predominantly urban areas. This trend has been driven by the "race for space" during the pandemic, where many people moved from cities to rural locations in search of larger homes and more outdoor space.

Rural areas, particularly tourist hotspots like Devon and the Lake District, have seen significant demand, possibly due to buyers seeking holiday or second homes. Nationwide's analysis indicates that local authority areas classified as predominantly rural have continued to see stronger house price growth compared to urban areas. Semi-detached homes in rural regions experienced the highest price growth at 24%, followed closely by rural terraced homes and urban semis at 23%.

Conversely, urban flats have witnessed considerably weaker price growth, with values increasing by only 5% over the same period. This data, covering December 2018 to December 2023, highlights a clear preference shift towards rural living. The UK government has also introduced new regulations for short-term holiday lets in England to manage the burgeoning demand in this sector.

Source: The Guardian