The ‘Covid City Exodus: Reality, Reversal or Urban Myth?’ white paper comprises the results of consultant economist Bob Pannell’s analysis of the housing market over a 27-year period, undertaken to better understand buyers’ preferences.

The report highlighted that the shift in preference for rural households over urban has started to reverse more recently.

According to the research, rural sales saw the highest uplift in H2 2020, when growth outpaced urban sales by about 10% — however, the lead in rural sales growth over urban fell to 4% in the first half of 2021.

Over the last six months, rural sales growth lagged behind urban by about 7%. 

“Analysis of more long-term data suggests there have been modest shifts in activity to rural, coastal and other areas that are popular for holidays or second homes, rather than the paradigm shift supposed by many,” the white paper says.

The report also highlights that the growing demand for larger homes is actually a longer-term trend, rather than one accelerated by the pandemic.

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Analysis of data from 1995 to 2022 found that the share of detached homes in the sales mix rose from 29% to 33% over the 27-year period. 

Between 2015 to 2019 (before Covid), sales of detached homes accounted for 31% of all transactions.

Over the past 18 months, the number of transactions involving detached homes edged up by just 2%, to make up 33% of all sales.

Graham Emmett, co-founder of Atelier (pictured above), commented: “What is clear from this report is that, while Britain’s property map has been redrawn by Covid, any obituaries written for our cities are grossly premature — on the whole, cities remain great places to live and invest in.

“Despite the uncertainty of the past two years, the long-term outlook for the property markets of the major UK cities appears favourable. 

“This striking new data also underlines just how crucial traditional population centres are for the overall economic recovery.

“It also sheds new light on the much-hyped race for space — it turns out the race has been a marathon, not a sprint, and that larger homes have been steadily becoming more popular among buyers seeking more space or a garden. 

“This demand is about lifestyle as much as about life after Covid.”