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What is the price premium you pay to live in an English market town?

Posted 25 October 2016 by Ben Salisbury

To enjoy the benefits of living in an English market town you have to pay a premium as most prices for a home in a market town are above the county average

Homebuyers looking to buy a new home in a market town in England have to pay a premium of £34,000, compared to neighbouring areas, according to new research from Lloyds Bank.

The research found that almost 70% of market towns have average prices that are above the average for the county they are in and 20% have a premium of at least £100,000.

Overall, house prices in market towns have gone up by £65,559, an average of £546 a month since 2006, a rate of house price growth of 31% taking the average price to £273,757 from £208,197 – 7.8 times the average salary of all full time workers.

Andy Mason, mortgages director at Lloyds Bank, said: "Market towns continue to be popular with homebuyers looking for a quality of life associated with country living.  These locations offer many benefits such as idyllic surroundings, history and wonderful homes without compromising on many other important amenities.

“As a result, the majority of homes in market towns command a significant premium over their neighbouring towns.  The most expensive market towns are typically found in the south of England and are a commutable distance from London.  More affordable market town homes can be found in the north of England.”

Beaconsfield in South Buckinghamshire is the most expensive market town in England with an average house price of £958,909. The town has the largest house price premium across England with homes trading at 160%, equivalent to £589,808, above the county average. It is just 23 miles and a 40 minute commute from London.

Market towns in South East England dominate the top 10 most expensive towns. Henley-on-Thames in Oxfordshire comes next with an average price of £748,001, followed by Alresford in Hampshire at £492,645. Henley-on-Thames had the biggest increase in prices over the past decade, up by £308,117 or 70%.

Outside of Southern England, Lymm in Cheshire is the most expensive market town with an average property value of £355,819.

For homebuyers looking to enjoy the benefits of a market town, Northern England is much more affordable. Ferryhill, at an average of £93,291 and Crook at £108,603, both in Durham are the least expensive market towns. Four of the five cheapest market towns are in Durham.

The horse racing market town of Wetherby has the next highest premium to county house price with an average house price that is double the rest of West Yorkshire, at £341,618 against £171,236, a cash premium of £170,383.

Russell Quirk of eMoov says: “We are seeing a rise in market towns because they are so quintessentially British. But as well as being picturesque and characterful, the introduction of better infrastructure means mobile phone signal and broadband is better in rural locations now, which adds to their appeal.”


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