Huge increase in house prices in market towns

by John Fitzsimons on 20 November 2011  |  7 comments
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New research has uncovered a phenomenal increase in house prices in market towns.

Location is often highlighted as the most important factor in a property’s value. After all, the same amount of money that can just about buy you a one-bedroom flat in West London may nab you a three-bedroom property somewhere else in the country.

All sorts of other factors play a part too, from distance from transport links to decent local schools.

However, new research suggests that living in an area with a cracking market can play a significant role in the value of your home.

Living in a market town

According to a new study by Lloyds, market towns have seen extraordinary house price growth over the past decade. Indeed, the average house price in market towns across England has more than doubled over the past decade, rising by 103% from £114,718 in 2001 to £233,416 to date.

That works out at just shy of £1,000 a month!

Here are the ten market towns which have seen the most significant price rises over the last decade:

The market town premium

For the privilege of living in a market town, you will have to dig deep.

Two out of three market towns have an average house price above the average within their county. In fact, prices in market towns tend to be around £25,000 – or 12% - higher than their county peers.

And in some towns that premium stretches far further. For example, in Beaconsfield in Buckinghamshire, you’ll need to shell out an incredible 157% extra for a property compared to homes across the rest of the county.

Here are the five towns whcih command the largest premiums:

The appeal of the market town

I can see why market towns are so attractive to prospective homebuyers. I live close to a couple myself, and can easily while away an hour or two when the market is open. But to me, there are two clear reasons that market towns are so desirable. For starters, they tend to be a little away from the hubbub of the city, towns where there’s plenty of countryside around you. A rural idyll, essentially.

But then there’s also the transport links. The whole idea of a market town is a town that the market can come to, making decent access a necessity. As you can see from many of the top performing towns, the links to local cities are all pretty strong.

In many ways a market town offers the best of both worlds. You get to enjoy countryside living, but city life is still within touching distance.

Buying for the right reasons

With that in mind, it’s perhaps fair to expect demand to live in these sorts of areas will remain pretty consistent. And having seen such strong price rises over the last decade, no doubt some buyers can see pound signs in their eyes!

But it’s always important to remember a home is exactly that – somewhere to live, a roof over your head. And that should be your first priority when picking out a property to buy, rather than worrying about how much you may or may not make when you sell the property on.

Don’t buy in a market town because you think you might make a few quid out of it. Your priority should always be to buy the right property for your circumstances. Why not check out our How to buy a property guide for some great advice on buying the perfect property at the perfect price.

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