A HERFORDSHIRE market town has had one of the fastest percentage increases in house prices over the past year.

Prices in Ledbury, where the average home costs £300,604, have risen 10 per cent – the 10th largest increase in market town property prices in the country.

Home buyers looking to live in England's market towns face paying a premium of nearly £31,000, a report by Lloyds Bank has found.

At £294,772, the average house price in market towns across England is £30,986 higher than house prices in surrounding county areas.

Northern market towns have been seeing the biggest house price jumps over the past year.

Ferryhill in Durham and Seahouses in Northumberland have seen the biggest average house price increases in Lloyds' study over the past year, both at 23 per cent, followed by Market Bosworth in Leicestershire (14 per cent).

Despite the price jump, Ferryhill was identified as England's least expensive market town, with an average house price of £96,319.

Meanwhile, Beaconsfield in Buckinghamshire, which is within commuting distance to London, is England's only million-pound market town – with average house prices at £1,031,529.

Andrew Mason, head of mortgages at Lloyds Bank, said: "There are many reasons why home buyers continue to pay a premium for market town properties; the idyllic surroundings of these close knit communities make them the perfect place for many."

Lloyds Bank used Land Registry house price figures to make the findings.

Here are the 10 most expensive market towns according to Lloyds Bank, with the average house price:

  1. Beaconsfield, Buckinghamshire, £1,031,529
  2. Henley-on-Thames, Oxfordshire, £797,436
  3. Alresford, Hampshire, £587,746
  4. Midhurst, Sussex, £523,295
  5. Thame, Oxfordshire, £484,537
  6. Petersfield, Hampshire, £480,743
  7. Cranbrook, Kent, £477,398
  8. Lewes, Sussex, £471,337
  9. Hertford, Hertfordshire, £466,519
  10. Saffron Walden, Essex, £457,835

Here are the market towns where home buyers face paying the highest premiums compared with average house prices in the surrounding county according to Lloyds Bank, with the average house price in each market town followed by the premium in percentage and cash terms:

  1. Beaconsfield, Buckinghamshire, £1,031,529, 153 per cent, £623,895
  2. Wetherby, West Yorkshire, £372,991, 100 per cent, £186,148
  3. Henley-on-Thames, Oxfordshire, £797,436, 93 per cent, £384,916
  4. Southwell, Nottinghamshire, £349,335, 80 per cent, £155,049
  5. Bakewell, Derbyshire, £364,672, 78 per cent, £159,261
  6. Alresford, Hampshire, £587,746, 77 per cent, £255,995
  7. Stamford, Lincolnshire, £356,673, 77 per cent, £154,735
  8. Altrincham, Cheshire, £443,690, 76 per cent, £191,867
  9. Keswick, Cumbria, £329,647, 74 per cent, £140,235
  10. Middleton St George, Durham, £224,204, 61 per cent, £85,186

And here are the market towns with the lowest average house prices, according to Lloyds Bank:

  1. Ferryhill, Durham, £96,319
  2. Crook, Durham, £110,213
  3. Immingham, Lincolnshire, £124,220
  4. Saltburn by-the-Sea, Durham, £148,335
  5. Stanhope, Durham, £150,295
  6. Tickhill, Derbyshire, £157,357
  7. Guisborough, North Yorkshire, £172,518
  8. Boston, Lincolnshire, £173,232
  9. Berwick-upon-Tweed, Northumberland, £177,106
  10. Goole, East Riding, £178,670

Here are the 10 market towns with the fastest percentage increases in house prices over the past year, according to Lloyds Bank, with the average house price followed by the percentage increase:

=1. Ferryhill, Durham, £96,319, 23 per cent

=1. Seahouses, Northumberland, £237,821 23 per cent

Market Bosworth, Leicestershire, £340,027, 14 per cent

Midhurst, Sussex, £523,295, 12 per cent

=5. Shepton Mallet, Somerset, £280,456, 11 per cent

=5. Marsden, West Yorkshire, £186,234, 11 per cent

=5. Thatcham, Berkshire, £433,994, 11 per cent

=8. Malmesbury, Wiltshire, £402,670, 10 per cent

=8. Morpeth, Northumberland, £234,279, 10 per cent

=8. Ledbury, Herefordshire, £300,604, 10 per cent