Buying a home in a popular market town in England comes with a price premium of £34,000 compared to neighbouring areas, new research has found.
Indeed, some 70% of market towns have average prices above their county average and almost one in five market towns have a house price premium of at least £100,000, according to the details from Lloyds Bank.
The research also shows that house prices in market towns have increased by an average of £546 per month since 2006 with Beaconsfield the most expensive English market town with an average house price of £958,909.
It means that that prices in these picturesque towns have grown, on average, by 31% in the past 10 years to an average price of £273,757, some 7.8 times the average gross earnings of all full time workers.
South East England dominates the top 10 most expensive market towns. Beaconsfield in South Buckinghamshire, close to the Chiltern Hills and within a 40 minute commute to London, is the most expensive and followed by Henley-on-Thames in Oxfordshire with an average price of £748,001, then Alfresford in Hampshire at £492,645.
The data also shows that outside of southern England Lymm is the most expensive market town with an average property value of £355,819 while the more affordable market towns are in the North of England.
Ferryhill with an average property value of £93,291 and Crook at £108,603, both in County Durham, are the least expensive market towns. Four of the five least expensive market towns surveyed are in the Durham area.
Beaconsfield, as well as being the most expensive market town, has the largest house price premium across England, with homes trading at 160% or £589,808 above the county average, at an average of £958,909.
The horse racing market town of Wetherby has the next highest premium to county house price with an average house price that is double that of West Yorkshire at £341,618 compared to a county average of £171,236 which in cash terms is a premium of £170,383.
Almost one in five market towns have a house price premium of at least £100,000.
Along with Beaconsfield and Wetherby, these towns include Henley on Thames in Oxfordshire with an average premium of £365,101 followed by Alfresford in Hampshire at £201,195 and Marlborough in Wiltshire at £183,073.
‘Market towns continue to be popular with homebuyers looking for a quality of life associated with country living. These locations offer many benefits such as idyllic surroundings, history and wonderful homes without compromising on many other important amenities,’ said Andy Mason, mortgages director at Lloyds Bank.
‘As a result, the majority of homes in market towns command a significant premium over their neighbouring towns. The most expensive market towns are typically found in the south of England and are a commutable distance from London. More affordable market town homes can be found in the north of England,’ he explained.
The research also shows that the average house price in market towns across England has risen by £65,559 or 31% from £208,197 in 2006 to £273,757 in 2016. This is equivalent to an average rise of £546 per month over the past decade.
Henley-on-Thames had the biggest increase in price over the past decade, where the average price rose by 70% or £308,117 from £439,884 to £748,001. Next is Beaconsfield, up by 68%, an increase of £389,110, and then the Oxfordshire towns of Didcot, up 58% or £119,235 and Thame up 55%, an increase of £136,741.
