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LONDON, May 20 (Reuters) Homeowners in smaller English towns have enjoyed some of the biggest house price rises over the last decade, a survey said on Saturday.

The Cornish cathedral city of Truro saw the most impressive gains, with prices more than two and a half times higher than in 1996, according to figures compiled by Halifax Estate Agents.

Prices across Cornwall have soared in recent years, fuelled by people seeking a second home near the sea and a growing number choosing to ''downsize'' with a move to the country.

In second place was the Sussex seaside town of Brighton, while Bath, the former Roman spa, came fifth in the survey.

Eight of the top 10 towns which saw the biggest rises over the last decade have fewer than 200,000 people living there, Halifax said.

Halifax Estate Agents' Chief Economist Martin Ellis said buyers were drawn to smaller towns with good services that are also near countryside.

''Many households want the conveniences of city living, such as good shopping, transport links and easy commuting, whilst living in attractive surroundings,'' he said in a statement.

Halifax compiled the survey by comparing the cost of houses per square metre. This method attempts to iron out differences in the size and type of properties between locations, Ellis said.

Armagh in Northern Ireland is the least expensive city in Britain, the survey found. The average price for a house is 1,009 pounds ($1,892) per square metre -- about a third of the price for a London property.

Halifax said London remained the most expensive city in Britain for homebuyers, ahead of the university city of Oxford and St Albans, Hertfordshire.

The gap between the capital and its nearest rivals is growing.

Ten years ago, London prices were 0.3 percent higher than the second-placed town. They are now 31 percent bigger.

Britain's house price boom began in the late 1990s on the back of low interest rates and surging demand.

There are fears prices could soon fall. The Bank of England said this month that the ratio of house prices to average earnings was ''unsustainable''.

REUTERS PV HT1238