THE charm of rural communities mean their house prices command £24,000 more than their surrounding areas, a report has found.

From a study of 113 area across the country, Middleton St George, near Darlington, ranked sixth, with homes going for £218,668, as opposed to £130,351 in the wider county - a 68 per cent increase in prices.

Community leaders said high prices can have issues for would-be homeowners.

Doris Jones, Councillor for Sadberge and Middleton St George, said: "The area and houses are attractive and developers are always fighting to build on our ground. I've lived here since 1986 and I love it here.

"I've seen the growth of the population from 2,000 to nearly 5,000. But we are getting over-congested and struggling to cope with all the developments which push out younger people, especially as 250 extra houses have just been approved to be built on Sadberge Road."

The study, carried out by Lloyds Bank, found that market town prices were £23,938 or 11 per cent more expensive than those in their wider counties.

On average, home prices in market towns have increased by £460 every month over the last decade, the report found.

Steve York, Councillor for Sadberge and Middleton St George said: "Obviously it doesn't help first-time buyers and young people who are brought up in a rural area.

"It's a hindrance as it doesn't give them a chance to get on the property ladder and pushes local people away from where they were brought up which is a bit unfair.

"But it's also an advantage for people who are selling their houses and they will probably welcome the fact that their houses are worth a bit more."

Beaconsfield in south Buckinghamshire - close to the Chiltern Hills and within a commutable distance to London - was ranked England's most expensive market town, with homes trading at £652,178 or 189 per cent above the county average.

Outside southern England, Bakewell in the Derbyshire Dales was the most expensive, with homes costing about £351,092.

Andy Mason, mortgages director at Lloyds Bank, said: "Homes in market towns typically command a significant premium over their neighbouring towns.

"The quality of life benefits often associated with living in such locations are still proving popular among home buyers.

"Market towns are often particularly attractive for those looking to move into more idyllic surroundings without sacrificing many of the important amenities they currently enjoy."

Lloyds Bank used Land Registry figures for the study.