House prices in rural areas have risen significantly higher over the last five years, compared to predominantly urban areas
This is according to new market analysis from Nationwide, which reveals that between December 2019 and December 2024, house prices in 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.
Commenting on the figures,Nationwide’s senior economist Andrew Harvey said: “The pandemic had a significant impact on housing demand during 2021 and 2022, with our research at the time pointing to 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.”
The Nationwide survey focused on homeowners who have moved in the last five years. It found that the majority (63%) of house moves were within the same type of area, with the biggest flow being within large towns or cities.
About 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,
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, whilst older age groups, particularly 55-plus, favouring more rural areas.
Responding to the survey’s findings, NAEA Propertymark president Toby Leek 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.”
He added: “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.”
