With their charm, convenience and community spirit, market towns will set first-time buyers back £280,582 on average, analysis by a major bank indicates.
Across England and Wales, the typical amount paid by first-time buyers for a home in a market town has increased by 2% annually and by 26% since 2020, according to Lloyds, which used data from Halifax, part of the same banking group.
Leek in Staffordshire in the West Midlands was identified as the most affordable market town for first-time buyers in the study, with an average property price of £191,359.
Six of the 10 most affordable market towns for first-time buyers in the study are located in the Midlands.
With its commuting links to London, Hitchin in Hertfordshire was identified as the most expensive market town for first-time buyers, with an average price of £410,366.
Looking at all buyers, the average house price in market towns was put at £363,456, up 5% in the past year and 24% in the past five years.
The research tracked house prices across 116 market towns.
Beaconsfield in Buckinghamshire was identified by Lloyds as the most expensive market town for all buyer types, with an average price of £839,468.
Nearby Chesham and Amersham were identified in a separate study by L&G this week as Britain’s best places to retire.
Andrew Asaam, homes director, Lloyds, said: “That ‘best of both worlds’ feeling has led to house prices in these areas holding up. In fact, the priciest market towns are amongst the most expensive locations, outside of Greater London, to settle into a home.
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“It’s worth looking beyond the most popular spots as some market towns are great value for money while offering the farmers’ markets, independent shops and community spirit that make these historic places so appealing.”
The report quoted Amy Flynn, 26, who got onto the property ladder in Bromsgrove, Worcestershire.
She said: “When looking to buy our first home, location was very important to us. We chose Bromsgrove, a market town, primarily for its connectivity, allowing us to easily commute to work and visit family and friends.
“Beyond logistics, we were drawn to the town’s atmosphere. It has plenty of supermarkets, coffee shops, parks, pubs, gyms, barbers, nail salons and lots of charity shops to browse – everything a young couple could need.”
She added: “Being within walking distance of everything we need means we don’t need to spend as much money on petrol or delivery, helping us to save those extra pennies which are very important when navigating bills and expenses for the first time.
“Choosing Bromsgrove means we can still enjoy a fulfilling lifestyle while managing the financial responsibilities of buying our first home.”
Here are the least expensive market towns according to Lloyds, with the average first-time buyer house price in the 12 months to May 2025:
1. Leek, West Midlands, £191,359
2. Chesterfield, East Midlands, £198,054
3. Northallerton, Yorkshire and the Humber, £201,628
4. Selby, Yorkshire and the Humber, £202,092
5. Driffield, Yorkshire and the Humber, £203,160
6. Boston, East Midlands, £211,404
7. Buxton, East Midlands, £224,896
8. Newport, South Wales, £227,784
9. Sleaford, East Midlands, £229,197
10. Grantham, East Midlands, £230,464
Here are the most expensive market towns for first-time buyers, according to Lloyds:
1. Hitchin, East of England, £410,366
2. Altrincham, North West, £404,864
3. West Malling, South East, £396,925
4. Hertford, East of England, £392,310
5. Saffron Walden, East of England, £363,960
6. Wimborne, South West, £361,591
7. Market Harborough, East Midlands, £353,250
8. Chipping Norton, South East, £353,077
9. Didcot, South East, £352,919
10. Thatcham, South East, £349,602
And here are the market towns with the biggest house price increases between 2020 and 2025 in the study, across all buyer types. Figures show the average house price in the 12 months to May 2025 and the percentage increase over the five years:
1. Crook, North East, £207,250, 99%
2. Helston, South West, £348,017, 62%
3. Chipping Norton, South East, £617,697, 61%
4. Skipton, Yorkshire and the Humber, £365,674, 60%
5. Carnforth, North West, £326,911, 50%
6. Wetherby, Yorkshire and the Humber, £498,661, 49%
7. Holmfirth, Yorkshire and the Humber, £391,639, 46%
8. Boston, East Midlands, £262,955, 44%
=9. Selby, Yorkshire and the Humber, £286,525, 40%
=9. Retford, East Midlands, £305,674, 40%