Living in a market town is popular for home buyers and the £33,000 premium paid has reduced by 3% in the last year.
The cost of living in a market town has reduced by 3% or £6,311 over the last year according to research by Lloyds Bank with home buyers paying £33,058 premium compared to the rest of the county.
Wealthy home movers would need to pay a premium of 162% or £679,577 to live in the market town of Beaconsfield, Buckinghamshire where property values average £1,098,060.
For first time buyers the least expensive homes are in Ferryhill, Durham with average house price of £91,153 or Immingham, Yorkshire and Humberside with prices of £120,810.
Market towns popular places to life
Market towns attract many people looking for a particular quality of life, perhaps to escape the congestion of a major city like London and with the resources to pay the premiums.
Andrew Mason, Mortgage Director Lloyds Bank said, market towns have a long-standing reputation for being packed with typical English charm with cobbled streets, bustling market stalls and historic buildings.
This table from Lloyds Bank shows the average house prices and premium paid to live in a market town.
Region House prices Premium
| Region | House prices | Premium |
|---|---|---|
| Beaconsfield | £1,098,060 | £679,577 |
| Henley on Thames | £811,388 | £399,203 |
| Bakewell | £404,245 | £198,279 |
| Keswick | £362,148 | £172,020 |
| Wetherby | £347,760 | £160,625 |
| Stamford | £380,036 | £172,785 |
| Altrincham | £480,718 | £218,508 |
| Southwell | £343,151 | £147,397 |
| Alresford | £564,156 | £231,067 |
| Marlborough | £470,072 | £180,551 |
There are three towns in the top ten located in the South East leading with Beaconsfield with an average house price of £1,098,060, Henley on Thames costing £811,388 and Alresford at £470,072.
For Henley on Thames the premium is almost double the surrounding area at 97% or £399,203 and Alresford has a lower premium of 69% or £231,067.
Any existing homeowner living in a market town can benefit from these premiums allowing the remortgage buyer to release capital to improve their home such as adding an extension or new kitchen.
Strong house price growth over decade
Over the past decade market towns have seen house prices increase considerably with Faversham in Kent increasing 82% or £154,530 to a current average of £342,365.
Next is Stamford, Lincolnshire where prices are higher by 78% or £166,280 with average property values of £380,036 and this compares to the average increase of market towns in the UK has been 37%.
There has been strong growth for Hungerford, Berkshire with house prices up 21% or £88,327 in the last year and homes costing on average over £500k.
Older homeowners living in the top ten market towns have significant capital gains and the equity release mortgage buyer can access cash to improve the quality of life or pay university fees for grandchildren.
With higher house prices paid for popular market towns, buy-to-let landlords may look to nearby areas in the county to achieve better value for money and help improve their rental yields.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to reduce inheritance tax owed by your beneficiaries or purchase a new car.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart.
