From December 2019 to December 2024, property prices in predominantly rural areas rose by 23%, compared to an 18% increase in predominantly urban locations. Local authorities classified as “urban with significant rural” also saw a strong rise, with a 22% increase in average house prices.
Andrew Harvey, Senior Economist at Nationwide, attributed the sustained rural growth to shifts in housing preferences triggered by the pandemic.
“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 amongst older age groups,” Harvey said. “Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.”
Nationwide’s analysis used the Office for National Statistics’ rural-urban classification, which evaluates local authorities based on the proportion of residents living in different types of areas.
Rural terraced houses saw the most significant price growth, with average values rising by 25% over the five-year period. Rural semi-detached homes matched that figure, while rural detached properties experienced a 21% rise. By contrast, flats in urban areas recorded the weakest growth, increasing by just 6%.
Harvey noted that the desire for more space has played a major role in housing trends since the pandemic.
“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,” he said.
Among those who moved homes in the past five years, 33% purchased detached houses, while only 15% opted for flats. Movers to rural areas were more likely to purchase detached (41%) or semi-detached (29%) properties.
While rural areas have generally outperformed urban ones in price growth, just four of the 20 top-performing local authorities in 2024 were classified as predominantly rural. The standout rural performer was Tewkesbury in Gloucestershire, where average house prices jumped by 11% over the year.
Nationwide’s survey also highlighted demographic differences in moving patterns. Younger buyers aged 25–34 were more likely to relocate to urban areas, while older age groups, particularly those over 55, showed a preference for rural settings.
Overall, of the 349 local authorities across Great Britain, 61% are classified as predominantly urban, 26% as predominantly rural, and 14% as urban with significant rural characteristics. The South West of England has the highest share of rural authorities, while London has none.
Toby Leek, NAEA Propertymark president, said:
“Rural houses continue to show as a popular choice amongst home movers even after the spike seen on the back of the COVID pandemic. 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."
