Rural areas record biggest house price rises - can you afford to escape to the country?

Rural areas have recorded the biggest house price increases over the last five years, according to new research by Nationwide.

The building society found average prices increased by more than 20% in rural towns between 2018 and 2023.

Read on to find out about the latest property hotspots, and for advice on finding the best place to live. 

House prices in rural areas rise by 22%

A new report found house prices in rural parts of Great Britain increased by 22% between 2018 and 2023, compared to 17% in urban areas. 

These show that 61% of local authorities in Great Britain are considered 'predominantly urban', while 26% are classified as 'predominantly rural'. 

Find out more: 

The race for space

Nationwide's analysis takes in the pandemic, a period in which homebuying habits changed. 

Despite this trend, it was semi-detached properties in rural areas that recorded the biggest price increases between 2018 and 2023, rising by 22%. Flats in urban areas recorded the smallest increases, at just 5%.

There are also some signs that the rural race for space may have run its course, with some pandemic buyers now reversing their moves. 

Rural and urban hotspots in 2023

Nationwide also analysed what happened to house prices in local authorities across Great Britain last year. 

However, a handful of areas bucked the trend and recorded strong price increases.

The top 5 rural hotspots

The biggest price rise in 2023 came in the Scottish local authority of Eilean Siar (13%). This area covers the Outer Hebrides, with the council based in Stornoway (pictured) on the Isle of Lewis.

The popular tourist hotspots South Hams (Devon) and Westmorland & Furness (Lake District) also made the top 5. Nationwide says rising prices in these areas may in part be driven by people buying holiday homes or second homes. 

The biggest price increase in an urban area last year was also in Scotland, with East Renfrewshire topping the table with a rise of 10%. 

How to find the best place to live

If you're thinking of escaping to the country, or are just considering moving to a new area, it's really important to do your research. 

What's happening to house prices?

After a flat 12 months, house prices are beginning to rise, but the short-term future of the market depends on what happens to mortgage rates.

Many home buyers and sellers have been putting off their plans due to the high cost of borrowing, and although rates are expected to fall later this year, it's unlikely that any drop will be significant. 

This means that in most places, house sales are likely to remain relatively low. So buyers who can get a mortgage should be in a good position to negotiate and secure a good price. 

Find out more: 

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