Rural Property Prices Hold Up
Rural homes have performed marginally better than urban properties after the economic crisis and drop in house prices that the majority of the country has seen since 2007.
The value of rural houses has dropped 20% in the past five years, slightly less than the 22% decline in the value of urban homes, according to the Halifax.1
The average price of an urban property is £171,909, compared with £201,191 for the average rural house.1
Many rural areas still face a big problem with affordability, as there are wide gaps between house prices and incomes. Despite property prices falling recently, the value of rural homes has risen by 40% over the last decade, just higher than the 36% increase in the price of city homes.1
Rural areas are also seeing less first time buyers breaking into the market, as house prices can surpass earnings by up to eight times. The most unaffordable area is Tandridge in Surrey, where the average house price is 8.4 times the average wage.1
In rural parts, first time buyers make up about a third of all those buying with a mortgage, whereas they account for half in urban areas.1
Alongside high property prices are high rents, and many people in rural spaces struggle to afford rental property also. In some areas, this is fuelled by large amounts of holiday homes, which drive rents and house prices, making it difficult for local people.