Urban House Price Growth Outpaces Rural Areas in England

Urban house prices are rising much faster than rural properties in England as the UK's economic recovery draws people into towns and cities where more jobs are being created.

According to online estate agency PrimeLocation.com, which caters for the middle and upper tiers of the property market, the average asking price for an urban home soared 12.9% in 2013 to £341,090. In rural areas, the rate of growth was 8.3% and the average price £304,620.

In 2013, the UK economy grew at its fastest rate for six years as the recovery from the post-financial crisis slump begins.

A report by the Centre for Cities thinktank found that 80% of all private sector job creation since 2010 have been in London. There has been growth in other cities, however, with 2.1% more jobs over the same period in Liverpool and a 1.5% rise in Manchester.

"Urban areas have been boosted by the strengthening economic recovery and growing jobs numbers," said Lawrence Hall of PrimeLocation.com.

"And this boost is driving up demand and pricing for properties in towns and cities across England."

London is the main driver of rising urban house prices, with a 17.5% leap on the year before to an average asking price £756,640. The worst performing region was urban areas in the south west, with just 0.7% growth to £280,020.

The best rural area to see growth was the north west, with a 17.5% leap in the average asking price to £365,130. Yorkshire and the Humber's rural properties had the worst growth rate of 1.5% to £277,090.