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Rural property values outperforming urban

Posted at September 21, 2012 | By : | Categories : News | 0 Comment

Rural house prices have slightly outperformed those in urban areas since 2007, according to latest research from Halifax.

In the past five years, the average price of a countryside home has fallen by 20% compared to 22% in urban areas.

Over the past year, the value of the average country home has risen 2% compared with 1% for an urban dwelling, and at £201,191 the typical rural property is now worth 17% more than its urban equivalent (£171,709).

But rising property values have made rural housing less accessible – in 2012 only one in 17 (five in total) rural Local Authority Districts were deemed affordable, that is to say has a house price to earnings ratio of four or less.

The least affordable area is Tandridge in Surrey, where the price of a house is 8.4 times greater than the local average annual income, with Cotswold (8.1) coming in a close second.

At £427,647, the highest average property price in rural Britain is found in Chiltern; over four times higher than the lowest – East Ayrshire with an average price of £100,119.

Halifax housing economist, Martin Ellis, comments: “The traditional British country pile has become less affordable, and it is proving more and more difficult to find fruitful results when foraging for houses in the country.”

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