Home-buyers are prepared to pay more for properties in market towns to benefit from the high quality of life the towns offer, research showed today.

Homes in two-thirds of English market towns sell for more than those in neighbouring towns in the same county, according to Britain’s biggest mortgage lender Halifax.

House price growth has also been faster in many market towns, with just over half of the 112 towns recording price rises of more than the 55 per cent seen across England as a whole during the past five years.

The only towns in Shropshire targeted by researchers were Ludlow and Church Stretton, where prices have risen by 180 per cent and 130 per cent respectively.

Ludlow comes in at 20th place in the list of 20 market towns which have seen the biggest percentage rise nationally.

A home in the town in 1995 cost just £59,774 compared to current average prices of more than £172,000.

Properties in Beaconsfield, in Buckinghamshire, command the largest premium, with homes there costing an average of 144 per cent more than properties in other towns in the area.

Martin Ellis, Halifax chief economist, 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.”

Meanwhile, lower mortgage rates were coming into effect today. The Halifax announced yesterday it was reducing its two-year fixed rate mortgages by 0.1 per cent and its five-year fixed rate ones by 0.15 per cent.

A two-year fixed rate mortgage with at least a 25 per cent deposit will fall by 0.1 per cent to 6.47 per cent.