Homeowners pay on average £34,000 over the odds to live in a market town

If you are looking to buy a property in one of England’s picturesque market towns you could be in for a shock.

According to latest research from Lloyds, seven out of 10 market towns have average prices above their county average, with homeowners paying a premium of almost £34,000 compared to their neighbours.

House prices in English market towns typically command a premium and have grown, on average, by 31% in the past 10 years to an average price of £273,757 – 7.8 times the average gross earnings of all full time workers.

The South East dominates the top 10 most expensive market towns. Beaconsfield in South Buckinghamshire – just a 40 minute commute to London – is the most expensive English market town with an average house price of £958,909. This is a whopping 160% more than the average house price in the county.

The next most expensive market towns in England are Henley-on-Thames in Oxfordshire (£748,001) and Alfresford in Hampshire (£492,645).

Outside southern England, Lymm is the most expensive market town with an average property value of £355,819.

The most affordable market towns are in the North of England. Ferryhill with an average property value of £93,291 and Crook (£108,603), both in Durham, are the least expensive market towns. Four of the five least expensive market towns surveyed are in Durham.

Andy Mason, mortgages director at Lloyds Bank, said: “Market towns continue to be popular with homebuyers looking for a quality of life associated with country living. These locations offer many benefits such as idyllic surroundings, history and wonderful homes without compromising on many other important amenities.

“As a result, the majority of homes in market towns command a significant premium over their neighbouring towns. The most expensive market towns are typically found in the south of England and are a commutable distance from London. More affordable market town homes can be found in the north of England.”

The average house price in market towns across England has risen by £65,559 (or 31%) from £208,197 in 2006 to £273,757 in 2016.  This is equivalent to an average rise of £546 per month over the past decade.

Henley-on-Thames, home of the Regatta, had the biggest increase in price over the past decade, where the average price rose by 70% (£308,117) from £439,884 to £748,001.  Next is Beaconsfield (68%, an increase of £389,110) and then the Oxfordshire towns of Didcot (58% increase of £119,235) and Thames (55% an increase of £136,741).

10 market towns with the highest premium