A SUSSEX market town has been named the second most expensive in England.

Lewes with an average house price of £408,641 came second only to Beaconsfield in Buckinghamshire.

Midhurst came third with the average home costing £403,893.

The Lloyds Bank study found England's market towns command a £24,000 premium for home buyers.

Experts compared house prices in 113 market towns across the country with those in their wider counties.

It found that prices in market towns were £23,938 or 11% more expensive on average than values in the surrounding areas.

The average house price in Lewes was found to be £408,641, second only to those in Beaconsfield, Buckinghamshire, at a staggering £997,222.

Midhurst was third highest with an average of £403,893 with Ringwood, Hampshire (£398,998) and Petersfield also Hampshire rounding off the top five (£396,104).

On average, house prices in market towns, with their rural charm and easy access to amenities, have increased by £460 every month over the last decade, the study found.

A £55,179 or 28% increase in the typical price of a property in an English market town since 2005 means a buyer will pay around £250,686 for a home.

Beaconsfield in south Buckinghamshire - close to the Chiltern Hills and within a commutable distance to London - boasted the biggest price premium, with homes trading at £652,178 or 189% above the county average.

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

Bakewell and Wetherby in West Yorkshire both had prices which were double the county average, Lloyds Bank found.

One in 10 market towns across the study had a price premium of at least £100,000, including Southwell in Nottinghamshire, Keswick in Cumbria, Cheltenham in Gloucestershire, and Ringwood in Hampshire.

Lewes has for a long time been a desirable place to live with its history, quirky traditions, great pubs and of course the annual bonfire night events.

Midhurst too, is considered one of country's most picturesque market towns set in beautiful countryside.

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.