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Buyers pay £24,000 premium to live in market towns

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
09/10/2015

Homebuyers fork out an average of £24,000 extra to live in a market town, according to a study by Lloyds Bank.

The research found the majority of market towns in England command a price premium that is above their county average, with one in 10 buyers paying a premium of more than £100,000.

The average property price in an English market town is £250,686, which equates to 7.2 times the average salary.

Lloyds found that house prices in market towns across England are, on average, £23,938 (or 11 per cent) higher than their county average.

Beaconsfield in South Buckinghamshire was identified as the market town with the largest house price premium, with homes trading at 189% (or £652,178) above the county average.

Bakewell in Derbyshire and Wetherby in West Yorkshire both have an average house price that is double their county average; in cash terms the premiums are £175,327 and £162,995 respectively.

Other market towns commanding a premium include Southwell in Nottinghamshire (with an average premium of £131,419), Keswick in Cumbria (£130,100), Cheltenham in Gloucestershire (£128,591), and Ringwood in Hampshire (£125,175).

Lloyds found that house prices in market towns have risen by an average of £55,179 or 28% from £195,507 in 2005 to £250,686 in 2015.  This is equivalent to rise of £460 per month over the past decade.

Andy Mason, mortgages director at Lloyds Bank, said: “Homes in market towns typically command a significant premium over their neighbouring towns. The quality of life benefits often associated with living in such locations are still proving popular among homebuyers. Market towns are often particularly attractive for those looking to move into more idyllic surroundings without sacrificing many of the important amenities they currently enjoy.”


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