Nationwide’s latest House Price Index reveals that while the effects of increased demand for rural housing during 2021 and 2022 caused by the pandemic have now faded, house price growth in areas with more countryside continue to outpace those in more urban areas.
The majority – 63% – of house moves recorded over the last five years were within the same type of area, with the biggest flow being within large towns or cities.
Around 9% of moves were from towns or cities to rural villages or hamlets, although this was partially offset by the 7% who moved from rural to more urban areas.
When a homebuyer was moving to a different type of area, those aged 25-34 tended to move to more urban areas, while older age groups – particularly those aged 55-plus – favoured a move to the countryside.
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Rural property trends
A bigger property or garden was the top reason cited by those moving in the last five years, which Nationwide says may in part reflect the ‘race for space’ seen during the pandemic.
Just over 40% of those buying in rural locations bought a detached house, with a further 29% buying a semi-detached property.
Rural terraced properties, however, saw the strongest price growth between December 2019 and December 2024, with average prices increasing by 25%.
Despite rural areas performing better overall, only four out of the 20 top-performing local authorities in 2024 were classed as predominantly rural. Tewkesbury in Gloucestershire, North of the Cotswolds, was the top-performing rural authority in 2024, with average prices rising by 11%.
House prices in the UK rose by an average of 1.1% from February to March to £271,000, according to the latest figures from the Office for National Statistics (ONS).
