Copy article

Rural house prices rise by 23% over past 5 years: "The countryside premium isn’t going anywhere anytime soon"

ended 27. May 2025

House prices in predominantly rural areas have risen by 23% over the last five years, compared to 18% in predominantly urban areas, according to new research by the Nationwide. The lender also found that rural terraced properties have seen the strongest rate of price growth, and urban flats the weakest.

Commenting on the figures, Andrew Harvey, Nationwide's Senior Economist, said:

“Average house price growth in predominantly rural local authorities has continued to outpace that in predominantly urban areas. Between December 2019 and December 2024, house prices in predominantly rural areas increased by 23%, compared with 18% in predominantly urban areas. Local authorities classified as ‘urban with significant rural’ saw price growth of 22% over the same period."

Newspage asked property market experts for their views, below.

6 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
These latest figures from Nationwide shows the continued trend of people moving out of cities into rural areas for better quality of family life, fuelled by the technological changes making remote and hybrid working far easier. This removes the need to live in close proximity to city offices.
Star Quote
Copy

Editor
Chris Barry
Director at Thomas Legal
There are two reasons rural house prices have exceeded urban areas over the past five years. Firstly, the Covid pandemic sparked a desire for people to live in areas with more space, cleaner air and a quieter pace of living. We have offices in London and the Cotswolds, therefore seeing first hand the huge wave of clients moving out of the city and into the country. Secondly, urban areas tend to have a high concentration of leasehold properties which are not rising in value due to building safety issues. Rural areas are predominantly freehold properties that have risen in popularity since leasehold tenures have caused many issues with mortgage lenders.
Copy

Editor
Harry Goodliffe
Director at HTG Mortgages
Rural life is clearly still calling. A 23% rise in countryside property prices over five years shows just how strong the demand remains for space, greenery, and a slower pace of life. Terraces in rural areas are flying, while urban flats are lagging, which is no surprise given the shift in buyer priorities post-pandemic. People want lifestyle as much as location now, and many are willing to stretch further for it. The countryside premium isn’t going anywhere anytime soon.
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
This data reflects the clear and continuing shift in buyer behaviour post-pandemic. The desire for green space, flexible living and a better work-life balance continues to drive demand, trends that have persisted even after cities have reopened. Rural terraces, often seen as affordable entry points, have outperformed expectations, making them standout performers over the past five years. But affordability is a concern. A 23% rise over five years in rural areas means many locals could be priced out of their own communities, particularly in picturesque but low-wage regions. Meanwhile, urban flats have stagnated in value, highlighting ongoing demand imbalances that need addressing through smarter housing policy and better urban infrastructure.
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
Affordability, the rise of WFH, and a desire for space are all likely factors behind rural house prices outpacing urban. This rural-urban divide might also point to broader dynamics, like urban out-migration or investors eyeing rural areas for development potential.
Copy

Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Today's data reveals what every shrewd landlord already knows. Rural terraces jumping 25 percent while urban flats wheeze along at 6 percent tells you everything about where Britain is heading. The delicious irony is that Tewkesbury, hardly a tourist hotspot, leads the charge at 11 percent annual growth whilst Shoreditch studios are gathering dust on Rightmove. Our portfolio pivot to market towns three years ago now looks prophetic rather than provincial. The over 55s are voting with their removal vans, fleeing cities for stone cottages and actual gardens, while millennials remain trapped in overpriced urban rentals wondering why their avocado toast tastes bitter. This is not pandemic nostalgia but rather a permanent realignment, and those still betting on Zone 2 recovery might want to check what happened to Blockbuster shares. Rural Britain is not just winning, it is teaching the metropolis a masterclass in supply, demand, and why broadband speed matters more than proximity to Pret.