Data from Nationwide is the latest to suggest that average house price growth in predominantly rural locations has continued to outpace more urban areas.
Between December 2019 and December 2024, house prices in predominantly rural areas increased by 23%, compared with 18% in areas that are largely urban.
Nationwide chief economist Robert Gardner comments: “The pandemic had a significant impact on housing demand during 2021 and 2022, with a shift in preferences towards more rural areas, particularly amongst older age groups.
“Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.”
He continues: “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.
“However, amongst those who moved to a different type of area, there was a significant difference by age group, with younger people (those aged 25-34) tending to move to more urban areas, and older age groups, particularly 55+, favouring more rural areas.”
Separate analysis from Open Property Group reveals that rural England is facing an affordability crunch, again thanks to house prices in the countryside outpacing urban growth.
The property price surge comes despite lower average wages and higher living costs in remote areas. OPG says these shifting dynamics are challenging the long-standing assumption that rural life offers a more affordable and sustainable alternative to the city.
It says that once seen as a financial refuge from soaring city prices, the English countryside is now becoming increasingly out of reach for many homebuyers, particularly younger and lower-income households.
Rural house prices grew faster than urban areas between 2018 and 2023: 22% average house price increase in rural areas against 17% increase in urban areas.
OPG says some experts believe that the pandemic-era migration trend, with city dwellers seeking space and lifestyle, has inflated demand and prices in rural housing markets.
Meanwhile wages in rural areas lag behind urban centres – a rural average of £25,600 against an urban average £27,200.
Jason Harris-Cohen, managing director of Open Property Group, says: “House prices in rural areas have risen sharply, but wages haven’t kept up. What was once considered a cheaper alternative to city living is now pricing many out. Buyers need to consider not just price, but the total cost of rural life.
“Rural communities are caught in a paradox: demand has driven prices skyward, but the local economy hasn’t followed suit. The result is a growing gap between what people earn and what homes cost — a key contributor to the rural housing crisis. As policymakers debate solutions to the housing and cost of living crisis, rural affordability must be placed higher on the agenda.”
This article is taken from Landlord Today