Property prices in English market towns up by 103% in last decade
New research shows that the average price of a property in a market town in England has increased by 103% in the last ten year, almost £1,000 per month.
The average house price in these towns has gone up from £114,718 in 2001 to £233,416 in 2011, according to research from Lloyds TSB. This is equivalent to an increase of £989 per month over the past decade.
More than half of the market towns in this survey have seen house prices at least double since 2001. Some of the largest prices increases have been in northern England, particularly in the North. The biggest increase was in Stanhope in County Durham where the average price rose by 158% from £57,502 to £148,264. Another market town in Durham, Ferryhill, recorded the second largest rise at 155%.
Alford in Lincolnshire saw prices increase by 150%, Saltburn on the north east coast, Helston in Cornwall and Seahouses in Northumberland were all up 145%. Helston is the only one of the ten market towns with the largest house price growth in southern England.
Two out of three market towns have an average house price that is above their county average. House prices in market towns are, on average, £25,592, or 12%, higher than their county average. The average house price in market towns, at £233,416, is 6.8 times average gross annual earnings; this is slightly below the price to earnings ratio of 7.0 for England as a whole.
Beaconsfield in Buckinghamshire, the most expensive English market town with an average house price of £779,986, has the largest premium with houses trading at 157% or £476,935 above the county average.
Wetherby has the next highest premium with prices 105% or £160,469 above the West Yorkshire average.
Since the start of the housing downturn in 2007 house prices in market towns have risen by 5% on average.
‘The popularity of living in market towns is clearly evident from the substantial increases in average house prices seen over the past decade, together with the significant premium that many of them command over their neighbouring towns,’ said Nitesh Patel, housing economist at Lloyds TSB.
‘Many of these towns offer an attractive balance between being close to the countryside and ease of access to the road and rail networks that allow residents to commute to work,’ Patel added.
The research also found that of the 23 market towns that have an average house price exceeding £300,000 only four are outside southern England. Wetherby in West Yorkshire is the most expensive market town outside southern England with an average house price of £313,802.
Ferryhill in Durham is the least expensive market town in England with an average house price of £89,446. Ferryhill and Immingham in Lincolnshire at £97,985 are the only two market towns in the survey with an average house price below £100,000. The least expensive market town in southern England is Downham Market in Norfolk at £160,179.