House prices in mainly rural areas went up by 23% over the past five years, ahead of the 18% rise in mainly urban areas, according to Nationwide’s latest house price index (HPI).
Areas classed as ‘urban with significant rural’ saw a 22% increase.
Andrew Harvey, senior economist at Nationwide, said: “Average house price growth in predominantly rural local authorities has continued to outpace that in predominantly urban areas.
“Between December 2019 and December 2024, house prices in predominantly rural areas increased by 23%, compared with 18% in predominantly urban areas.
“Local authorities classified as ‘urban with significant rural’ saw price growth of 22% over the same period.”
Harvey said the pandemic played a big part in demand for homes in rural areas, especially among older buyers, but that rural areas continued to see stronger price growth even after those effects faded.
Harvey added: “Our findings indicate that the majority (63%) of house moves were within the same type of area, with the biggest flow being within large towns or cities.
“Around 9% of moves were from towns / cities to rural areas (villages or hamlets), although this was partially offset by 7% who moved from rural to more urban areas.”
The research also found younger people aged 25 to 34 tended to move to more urban areas, while older groups, especially those over 55, were more likely to move to rural locations.
He said: “Our survey data shows that a bigger property or garden was the top reason cited by those moving in the last five years, which may in part reflect the ‘race for space’ seen during the pandemic.
“Amongst those buying in rural locations, 41% of those surveyed bought a detached house, with a further 29% buying a semi-detached.
“But it is actually rural terraced properties that have seen the strongest price growth between December 2019 and December 2024, with average prices increasing by 25%.”
Rural semi-detached properties also went up by 25%, with urban semis rising by 24%.
Rural detached houses rose by 21%.
Meanwhile, urban flats saw the weakest growth, up just 6% over five years.
Despite rural areas showing higher growth overall, only four out of the top 20 local authorities for 2024 were classed as mainly rural.
Tewkesbury in the South West was the highest-performing rural area, with prices up 11%.
Toby Leek, president of NAEA Propertymark, said: “Rural houses continue to show as a popular choice amongst home movers even after the spike seen on the back of the COVID pandemic.
“A shift in trends, such as remote working, a desire for more outdoor space and changes to many people’s general cost of living budgets have pushed some to move to more rural locations.
“Generally, these types of homes can offer some additional perks such as additional space both inside and out, privacy and a different pace of life.”
