The dream of living in the country comes at a price Photo: Comedy Nose
After living in the city, who has not dreamed of living in the quiet countryside, away from the hustle and bustle of urban life? For those who do, though, that dream comes at a price: specifically, £46,575.
On average, that is how much more homes in rural areas cost than their city counterparts: an average difference of 26 per cent.
Figures from Halifax show the rural house price premium differs significantly across the country. The rural premium is greatest in the West Midlands at £88,781 (57 per cent) compared to £17,570 in the North East (13 per cent).
Despite the higher price for buying in the countryside, though, the gap with urban prices is narrowing, as property prices have risen more slowly in rural areas during the past five years.
Between 2009 and 2014, the average price of a home in the countryside rose by 12 per cent compared with an average increase of 18 per cent in urban areas. Between 2013 and 2014, the average price of a home in the countryside has risen by 8 per cent compared with an average 10 per cent increase in urban areas (these figures exclude Greater London).
Unsurprisingly, first-time buyers account for 42 per cent of all mortgage financed purchases in rural areas, compared to more than half (54 per cent) in urban areas.
At the same time, though, that demand has helped to drive up urban prices: the recent outperformance of house prices in urban areas partly reflects the relative strengthening of the first-time buyer market in the last few years.
Martin Ellis, housing economist at Halifax, commented: “It typically costs significantly more to buy in rural areas with a substantial premium existing in all the regions of Great Britain. This reflects the aspiration of many to own a property in the countryside. The relatively high prices, however, put rural homes out of the reach for many, particularly the young. This is reflected in first-time buyers accounting for a smaller proportion of homebuyers in the countryside than in urban areas.”
Source: The Movechannel