Nationwide research finds post-pandemic preferences for space and lifestyle continue to support rural markets
House prices in predominantly rural areas of Great Britain have grown faster than those in urban locations over the past five years, according to new research by Nationwide Building Society.
Between December 2019 and December 2024, average property prices in rural local authorities rose by 23%, compared to 18% in mostly urban areas. Areas classified as “urban with significant rural” saw a 22% increase over the same period, the study found.
The figures were based on the Office for National Statistics’ rural-urban classification, which tracks the share of the population in each area type.
“The pandemic had a significant impact on housing demand during 2021 and 2022, with our research at the time pointing to a shift in preferences towards more rural areas, particularly among older age groups,” said Andrew Harvey (pictured), Nationwide’s senior economist. “While these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.”
Nationwide’s recent survey of homeowners who moved within the past five years found that most (63%) stayed in the same type of area. Movement between urban and rural settings was limited: 9% relocated from towns or cities to rural places, while 7% moved in the opposite direction.
Younger movers (aged 25 to 34) were more likely to shift to urban centres, while those aged 55 and older preferred rural settings.
Meanwhile, larger homes with outdoor space remain a key driver for movers. According to the survey, the most cited reason for moving was the desire for more space.
“Our survey data shows that a bigger property or garden was the top reason cited by those moving in the last five years, which may in part reflect the ‘race for space’ seen during the pandemic,” Harvey noted.
Detached homes made up 33% of recent purchases, while flats accounted for just 15%. Among those who bought in rural areas, 41% chose detached houses and 29% opted for semi-detached.
Despite their popularity, it was terraced homes in rural areas that saw the biggest jump in value, climbing 25% over the five-year period. Semi-detached homes in rural locations posted a similar gain, while urban semi-detached homes increased by 24%. Flats, especially in cities, saw the lowest price growth at just 6%.
Only four of the 20 top-performing local authorities for house price growth in 2024 were rural, according to Nationwide’s data. Tewkesbury in Gloucestershire led among rural areas, with an 11% rise in average prices.
Out of 349 local authorities, 61% are designated as mostly urban, 26% as predominantly rural, and 14% fall into a mixed category. The South West had the highest rural concentration, with more than half its local authorities classified as rural.
“Rural houses continue to show as a popular choice among home movers even after the spike seen on the back of the COVID pandemic,” commented Toby Leek, president of industry body NAEA Propertymark. “A shift in trends, such as remote working, a desire for more outdoor space and changes to many people’s general cost of living budgets have pushed some to move to more rural locations. Generally, these types of homes can offer some additional perks such as additional space both inside and out, privacy and a different pace of life.”
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