Countryside homes have £27,000 premium over urban areas
Property prices in the countryside are, on average, £27,000 (16%) higher than in urban areas, according to the latest annual Halifax Rural Housing Review, reports Andrew Oulsnam, Managing Partner of Robert Oulsnam & Company.
The rural premium has increased 35% over the last decade, up from £20,000 in 2001.
Since the housing downturn started in 2007, property prices in the countryside have fallen by 22% and in urban areas by 23%.
The strength in rural property prices over the past decade has resulted in housing becoming less affordable for buyers on average incomes. This is particularly true in the South West which has eight of the ten least affordable rural areas in the country.
The house price to earnings ratio for all rural areas is 5.6. This compares with an average of 4.8 for urban areas.
In 2001, average property prices in the rural south (£171,000) were 75% higher than in the rural north (£97,828); in 2011 the difference has narrowed to 52% (£252,696 in the south and £166,167 in the rural north).
This narrowing has been driven by an average house price increase of 70% in the rural areas of northern England, Wales and Scotland. Rural Scotland had the largest rise in Britain with an average increase of 101% from £79,104 to £158,923.
Rural areas in southern England, on the other hand, have seen more modest increases although property prices remain at a significantly higher level. Property prices in the rural areas of the South East grew by 40% over the decade and by 63% in the South West.