House prices in predominantly rural areas of Great Britain have risen faster than those in urban locations over the past five years, according to data from Nationwide Building Society. From December 2018 to December 2023, house prices in rural areas increased by 22%, compared to a 17% rise in urban areas. This period includes the “race for space” during the COVID-19 pandemic, which saw many move from cities to rural settings seeking larger homes and more open space.

Nationwide’s analysis highlights rural semi-detached properties as the top-performing type, with a 24% price increase. Rural terraced homes and urban semi-detached homes also showed significant growth at 23%. In contrast, flat prices, particularly in urban areas, grew by only 5%.

The survey covered 349 local authorities, where 212 are classified as predominantly urban, 89 as predominantly rural, and 48 as urban with significant rural elements. Areas such as Devon and the Lake District, popular tourist destinations, saw some of the highest increases, possibly driven by the demand for holiday and second homes.

The data indicates that while rural areas enjoyed higher price increases, both urban and rural regions saw a slight overall decline in 2023 due to rising borrowing costs. Separate research by property firm Hamptons noted that higher mortgage rates have influenced a shift towards smaller, more affordable homes, away from larger properties.