UK data shows that house price growth in rural areas has outpaced urban areas over the past five years, with rural semi-detached homes being the best-performing property type.
Figures from mortgage lender Nationwide showed average house prices in primarily rural areas rose 22% during the period, compared with 17% in primarily urban areas.
The firm said apartments in urban areas have generally been the worst performers over the past five years.
The data captures some of the effects of the “war for space” caused by the pandemic, which has resulted in a surge in the number of people looking to move from cities to the countryside, small towns and coastal areas – places that typically have bigger gardens, closer to open space or more space for working from home.
But research suggests that some of those who moved have since sold their homes and returned to the suburbs or cities.
Nationwide said the best-performing rural areas included tourist destinations such as Devon and the Lake District, suggesting some of the demand may be driven by people buying holiday and second homes.
Andrew Harvey, the housing association’s senior economist, said the company’s analysis showed that average house price growth in local authority areas classified as primarily rural “continues to outpace growth in other areas”.
Of the UK’s 349 local authorities, the majority (61%) are classed as predominantly urban, and just over a quarter (26%) as predominantly rural. The researchers found that semi-detached houses in rural areas saw the biggest price increases over the five year period, with the average price increasing by 24%.
Over the same period, rural terraced houses generally increased by 23%, as did urban semi-detached houses, but rural detached houses followed closely behind at 22%.
Nationwide said apartment growth had “weakened considerably”, particularly in urban core areas where prices typically rose by 5%.
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The figures are based on analysis of official UK house price data, produced by HM Land Registry and others, and cover the period from December 2018 to December 2023.
Earlier this year the government announced new rules for short-term holiday lettings in England, aimed at reining in a sector described by some as “out of control”.
