Living in a picturesque English market town costs homeowners £41,633 extra with the most expensive within the London commuter belt.
The latest report from Lloyds Bank shows that first time buyers and home movers must pay a premium of £41,633 or 17% higher than the country average to live in a picturesque market town in England.
Nine of the top ten most expensive English market towns are in the South East including Buckinghamshire, Hampshire, Oxfordshire, Hertfordshire, Bedfordshire, Kent, and Essex.
House prices have increased on average 23% or £54,908 from £235,867 in 2013 to £290,775 in 2018, which is eight times higher than average gross earnings across England of £37,161.
High premiums for top ten towns
The top ten market towns with the highest premiums have seen house prices rise on average 60% since 2008 compared to the average market town growth of 23%.
For homeowners living in these areas the strong growth in prices gives the remortgage buyer an opportunity to release capital for home improvements.
The following table form Lloyds Bank shows the top ten highest percentage premiums paid to County in 2018 and house prices:
| City | House Prices | Premium |
|---|---|---|
| Beaconsfield | £1,053,975 | 158% |
| Henley on Thames | £838,206 | 105% |
| Wetherby | £363,692 | 103% |
| Bakewell | £354,141 | 83% |
| Keswick | £323,373 | 75% |
| Altrincham | £428,491 | 71% |
| Southwell | £312,293 | 70% |
| Middleton St George | £222,099 | 68% |
| Alresford | £542,614 | 67% |
| Stamford | £314,423 | 60% |
At the top of the table is Beaconsfield in Buckinghamshire where home movers pay an average premium of 158%, then Henley on Thames in Oxfordshire with a 105%.
High premiums are not just in the South East and paid for market towns across England such as Wetherby in West Yorkshire on 103%, Bakewell in Derbyshire on 83% and Keswick in Cumbriaon 75%.
With higher premiums paid for market towns, buy-to-let landlords may look to more affordable locations for affordable properties to help improve rental yields.
The most affordable market town is in the north at Ferryhill in Durham, where an average value of £78,317, second is Immingham in Lincolnshire with £115,765.
Commuter belt with highest prices
Andrew Mason mortgages product director at Lloyds Bank said, home buyers continue to be attracted to towns on the commuter belt into London and are prepared to pay extra to live there.
Home county market towns have seen the highest house price increases and in the past five years have risen by an average of £915 per month.
Beaconsfield is close to the Chiltern Hills and within a 40-minute commute to London, with average prices of £1,053,975 where the premium is £644,995 above the county average of £408,980.
Henley on Thames average prices are £838,206 with a premium of £430,112 above the county average of £408,095.
Henley on Thames had the biggest increase in price since 2013, where the average house price rose by 63% or £325,266 to £838,206 followed by Thame rising 66% or £189,482 to £477,664.
For older homeowners the price growth in market towns allows the equity release mortgage buyer to access wealth from their homes which can improve their quality of life or home improvements and holidays of a lifetime.
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.
Learn more by using the mortgage calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to repay an interest only mortgage or gift to a family member or friend.
