House price growth in rural areas looks set to far outstrip that of urban areas over the next few years, according to a leading tax expert.

David Hannah, principal consultant at Cornerstone Tax, reflects on the fact that a growing number of people are moving away from a city in a report, as the impact of coronavirus makes city living less appealing for some people.

He points out that lockdown restrictions saw demand fall for property in some cities, most notably London, partly because many people were able to work from home, and he expects this trend to continue.

With research showing that many businesses are likely to offer their employees more flexible working conditions in the future, he believes that this will place upward pressure of property values throughout non-urban areas of the UK as demand grows.

Hannah said: “The findings from our report, as well as this new data from Barclays, confirms what we have thought for much of the past 12 months – living in a city has undergone a permanent shift in appeal.

“The clients we have advised during the pandemic have almost exclusively been looking for more space, both inside and outside the property, which usually means a hefty price tag or a more rural location.

“It is a trend that we see increasing in the future as it is now clear that working from home is here to stay. The fact that a quarter of workers are already planning to stop commuting shows the effect is here to stay.”

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