House prices in market towns trading at a premium

Two-thirds (67%) of market towns have a higher average house price than the neighbouring towns in their county, according to the Halifax Market Town Review.

Beaconsfield in Buckinghamshire has the largest premium with houses trading at a premium of 144% to the average house price in the county. Beaconsfield is followed by Bakewell (where house prices trade at a premium of 99% to the Derbyshire county average) and Southwell (93% above the Nottinghamshire average).

Fifteen other market towns trade at a premium of more than 50% to the average house price in their county. Nine of these are outside the south of England. Three are in the North West, all in Lancashire; three in the North, two in East Midlands and one in Yorkshire and the Humber.

Most expensive Market towns

Beaconsfield is the most expensive English market town with an average house price of £704,724 in March 2008. Eighteen other market towns have an average house price exceeding £300,000, including Ringwood (£380,301), Winchcombe (£371,796) and Cranbrook (£365,171).

Bakewell in the East Midlands is the most expensive market town outside southern England with an average house price of £331,117 in March 2008. Twenty one of the 25 most expensive market towns in England are in the south.

There are 76 market towns in England where the average house price was above £200,000 in March 2008. Forty six (60%) of these towns are in southern England. The remaining 30 (40%) market towns are roughly equally spread out across the midlands and northern England.

Least expensive Market towns

Ferryhill in Durham is the least expensive market town in England with an average house price of £84,892 in March 2008. Ferryhill is also the only town in the survey with an average house price below £100,000; however, the average price in this market town rose by 99% over the past five years.

Only five other market towns had an average house price below £150,000 in March 2008. These are Immingham in East Riding (£108,161), Crook (£114,695) and Saltburn (£140,524) - both in Durham - Tickhill in South Yorkshire (£143,261) and Boston in Lincolnshire (£146,503).

Strongest house price growth in the last five years

The majority of the 25 market towns with the strongest house price growth over the last five years are in northern3 England. Framlingham and Beccles - both in East Anglia - are the only two in the top 25 in southern England.

Seahouses and Saltburn both recorded average house price growth of 111%. In Seahouses, average price rose from £96,290 in March 2003 to £203,061 in March 2008, whilst in Saltburn average prices increased from £66,712 to £140,524.

Average price increases in Seahouses and Saltburn were double the average increase recorded for England of 55%. Over half of the market towns (60 out of 112) in this survey recorded an average price increase above that for England as a whole. Six other market towns saw prices rise by over 90% over the past five years; Ferryhill (99%), Marsden (98%), Goole (98%), Immingham (96%), Berwick upon Tweed (94%) and Drffield (93%)

Smallest house price growth in the last five years

The majority of the 25 market towns with the slowest price increases in the last five years are in southern England. The two exceptions are Lymm in Cheshire (28%) and Ross-on-Wye in Herefordshire (44%).

Midhurst in Sussex recorded the smallest gain in average house prices of 21%. However, the average price increased from £277,683 in 2003 to £335,885 in 2008 - making Midhurst one the most expensive market towns in England.

Martin Ellis Chief Economist at Halifax said: "Home buyers continue to be attracted to the high quality of life, architecture, history, setting and community spirit offered by market towns and are prepared to pay a premium to live there. Most market towns have higher house prices than other towns in their county. The majority have also seen stronger house price growth than the English average over the past five years."