Rural properties have seen the strongest rate of price growth over the past five years, according to Nationwide, with prices up 23% compared to 18% in urban areas.
Urban flats have seen the weakest growth, the building society said, whilst rural terraced properties have seen the strongest growth, with average prices increasing by 25% between December 2019 and December 2024.
The top performing rural local authority was Tewkesbury in the South West, where the average price of a home is £334,361, whilst the top performing urban local authority was Blackburn with Darwen, with a current average property price of £158,790. The South West has the highest proportion of rural local authorities, with 14 out of 26 being predominantly rural. Overall, only 89 out of the 349 local authorities in Great Britain are classified as predominantly rural, compared to 212 that are classified as predominantly urban. The remaining 48 (14%) are classed as urban with significant rural parts.
Demand for rural properties soared in 2021 and 2022, with the pandemic resulting in a ‘race for space’ after people were largely confined to their homes. Although fewer people are now working from home, less urban areas continue to prove more popular with home movers. Over the past five years, around one in 10 moves (9%) were from towns or cities to rural areas, compared to 7% who moved from rural to more urban areas. Those aged 55 and above were more likely to move to rural areas, whilst those aged 25-34 tended to move to more urban areas.
Of those buying a home in rural locations almost half (41%) bought a detached property, with a further 29% buying a semi-detached house.
The main reason people chose to move was so they could live in a bigger property or have a bigger garden. Other reasons cited by those who’ve moved in the past five years included having a better sense of community, being closer to friends and family, or living in a quieter or less busy environment.
