Countryside homes are £44,454 (20%) more expensive on average than in urban areas, according to the latest annual Halifax Rural Housing Review.
Whilst a ‘rural premium’ exists across the country, the research also discovered differences across Great Britain. The greatest of these in the West Midlands where the average house price in rural areas (£280,776) is £89,272 (47%) higher than in the region’s urban areas (£191,504). The smallest difference is in the East of England where there average premium on countryside homes drops to £27,765 (or 9%).
Property in rural areas is less affordable than in urban areas, with the property price in rural areas 7.6 times average annual earnings compared with a ratio of 6.5 in urban areas. All 10 of the least affordable rural local authority districts are in southern England, where North Dorset is the least affordable rural district with an average house price of £361,603 – 11.4 times local annual average earnings (£31,723). The second least affordable area is Chichester with an average house price of £411,547 (10.8), followed by West Oxfordshire (9.9).
Those wishing to escape to the country on a more manageable budget should look to the most affordable rural districts in the north of England and Scotland. Copeland and East Ayrshire are the most affordable rural districts in Britain, where the average house price is 4.1 times local average gross annual earnings. Between 2012 and 2017, the average price of a countryside home rose by 31% compared with an average increase of 43% in urban areas, resulting in the urban-rural premium gap narrowing from 31% (or £47,769) in 2012 to 20% (£44,454) in 2017.
Despite this, the rate of growth for both urban and rural areas has been the same at 3% over the past year.
Are you planning your “Escape to the Country”, give Bluebell a call and we can guide you through all your options.
Bluebell, your Expert Mortgage and Insurance Advisers. 01473 213312
