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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.
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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.
For its calculations, Nationwide combined house price data from the Land Registry with area classifications from the Office for National Statistics.
These show that 61% of local authorities in Great Britain are considered 'predominantly urban', while 26% are classified as 'predominantly rural'.
The south west of England has the highest proportion of rural local authorities (14 out of 26), while Greater London has none.
Nationwide's analysis takes in the pandemic, a period in which homebuying habits changed.
Most notably, a rise in working from home and the introduction of a temporary stamp duty holiday encouraged buyers to leave cities in search of larger homes in the countryside.
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.
Data released earlier this year by the estate agent Hamptons showed that 8% of people who sold a home in 2023 originally bought it in 2021, with the majority of these houses sold in the countryside and small towns.
Nationwide also analysed what happened to house prices in local authorities across Great Britain last year.
2023 was a muted year for the property market, with fewer homes selling due to high mortgage rates and sellers having to reduce their asking prices.
However, a handful of areas bucked the trend and recorded strong price increases.
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.
| Local authority | Region | Average price | Increase in 2023 |
|---|---|---|---|
| Eilean Siar | Scotland | £158,638 | 13% |
| South Hams | South West | £425,284 | 6% |
| Winchester | South East | £490,588 | 4% |
| North West Leicestershire | East Midlands | £266,301 | 4% |
| Westmorland & Furness | North West | £255,657 | 3% |
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%.
| Local authority | Region | Average house price | Increase in 2023 |
| East Renfrewshire | Scotland | £304,160 | 10% |
| Newcastle upon Tyne | North East | £196,297 | 4% |
| Rossendale | North West | £210,065 | 4% |
| Amber Valley | East Midlands | £234,654 | 3% |
| Calderdale | Yorkshire | £191,965 | 3% |
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.
You'll need to ensure the area you're targeting has the local amenities you'll need (such as transport connections, good schools etc) and has affordable property prices.
Our guide on finding the best place to live includes advice on what to look for when researching an area, and some of the key signs of an up-and-coming town that might just become the next property hotspot.
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.
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