Market towns attract house price premium
House prices in market towns across England are, on average, £22,616 (or 11%) higher than their county average whilst the average house price, at £235,719, is 6.4 times average gross annual earnings.
Indeed, such is the popularity of market towns that this house price premium has nearly doubled from £11,691 in 2002, when the average house price in market towns was £132,870, compared with an average of £121,179 for their county.
Around two-thirds (61%) of market towns have higher house prices than their neighbouring towns, according to the survey. Beaconsfield in Buckinghamshire has the largest premium with houses trading at 163% above the average house price in the county. Bakewell has the next highest premium with prices 123% above the Derbyshire average, followed by Wetherby where properties cost almost twice as much (96%) compared with West Yorkshire as a whole.
Beaconsfield is also the most expensive market town in England with an average house price of £810,704. Winchcombe in Gloucestershire (£405,590) and Tenterden in Kent (£377,293) are the next most expensive. Bakewell is the most expensive market town outside southern England with an average property value of £353,029. Twenty-two market towns – 19% of those surveyed – have an average house price exceeding £300,000.
Ferryhill in Durham is the least expensive market town in England with an average house price of £75,011. Ferryhill is also the only town in the survey with an average house price below £100,000.
Many of the largest prices increases in the past decade have been in market towns in northern England, with nine of the 10 top performing towns being in the north. The biggest increase was in Seahouses in Northumberland where the average price rose by 134% from £79,240 to £185,259.
Seven other market towns – eight in total – have seen property values more than double during the period – since 2002 average prices in market towns grew by 77%.
Nitesh Patel, housing economist at Lloyds TSB, said: “Home buyers are attracted to the high quality of life, architecture, history, setting and community spirit typically associated with market towns and are accordingly prepared to pay a premium to live in them. Close to two-thirds of market towns have higher house prices than other areas in their county.
“Market towns are often particularly desirable for those looking to move out of urban areas and into more idyllic surroundings without sacrificing many of the valued amenities they currently enjoy.”