English market towns command a £30,000 premium from homeowners or 12% more compared to living in neighbouring towns.
Research by Lloyds Bank shows homebuyers looking to live in one of England’s picturesque market towns pay an average price of £280,690.
On average house prices in market towns are on average £30,788 or 12% higher than neighbouring areas with price growth £6,850 up since 2015.
House prices in these market towns have increased 21% in the past five years and are 7.9 times the average gross earnings of full time workers.
For first time buyers, market towns may be out of their price range as they would need to find a larger deposit or have higher earnings to purchase their first home.
Most expensive market towns
The Lloyds survey of 135 market towns shows all the highest priced properties are located in the South East of England with Beaconsfield being the most expensive, with an average house price of £1,049,659.
These are attractive places to buy combining desirable features including traditional homes, historic rural setting with access to amenities such as transport, shops and restaurants.
The following table from Lloyds shows the average prices for the top ten market towns over twelve months to June 2017.
| Market town | County | Average price |
|---|---|---|
| Beaconsfield | Buckinghamshire | £1,049,659 |
| Henley on Thames | Oxfordshire | £831,452 |
| Alfresford | Hampshire | £541,529 |
| Cranbrook | Kent | £490,566 |
| Petersfield | Hampshire | £484,524 |
| Thame | Oxfordshire | £476,365 |
| Lewes | Sussex | £463,836 |
| Hertford | Hertfordshire | £452,843 |
| Marlborough | Wiltshire | £441,623 |
| Saffron | Walden | £441,583 |
Andrew Mason, mortgages product director at Lloyds Bank said homebuyers continue to be attracted to the charm and high quality of life offered by market towns and are typically happy to pay extra to live there.
With higher house prices in market towns buy-to-let landlords will look to other for affordable properties in other towns to help improve rental yields.
The most expensive market towns are found in the South East at a commutable distance from London, with many homes in Beaconsfield costing more than £1 million, says Mr Mason.
For home movers wanting to trade up to popular market towns, they may find their next property is more expensive which means they need a larger deposit or mortgage.
Large premiums paid close to London
Beaconsfield is close to the Chiltern Hills and within a 40 minute commute to London with the largest price premium of 161% and is £402,036 above the county average.
The horse racing market town of Wetherby has the second highest premium rising 110% with an average house price of £366,873 compared to prices in West Yorkshire of £175,056.
Henley on Thames has increased the most since 2012 up 53% or £288,847 in the last five years and for remortgage buyers this premium lets them release capital for home improvements.
The older homeowner is likely to have accumulated considerable value in their properties allowing the equity release buyer can access this wealth to buy a more expensive home or reduce inheritance tax owed by your beneficiaries.
For homebuyers looking for more affordable market town living in a range of Counties such as Ferryhill in Durham with an average property value of £78,184 or Immingham in Lincolnshire valued at £115,769.
You would need to pay more to buy in North Yorkshire with average house prices in Guisborough at £151,309 or Cartmel in Cumbria at £165,335.
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