House prices 'higher in market towns'

First-time buyers hoping to get a mortgage this year may wish to avoid house-hunting in market towns.

According to the latest statistics released by the Halifax, two-thirds of market towns in England have a higher average house price than the neighbouring towns in their county.

Beaconsfield in Buckinghamshire was found to be the most expensive market town to purchase a house in, with an average price of £704,724 in March.

It was followed by Bakewell in Derbyshire, which was found to have house prices trading at 99 per cent of the Derbyshire average.

Furthermore, over half of the market towns surveyed recorded house price growth above the average for England as a whole in the last five years.

Martin Ellis, chief economist at the Halifax, explained the reasons why houses are more expensive in these areas.

"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," he commented.

According to property website Rightmove, British house prices fell 1.8 per cent in July, with new sellers dropping asking prices aggressively as they entered an already-crowded market.