Rural first time buyers 'half as common'

28-Aug-2007

There are half as many first time buyers in rural areas as there are in the country's towns and cities, the annual Halifax Rural Housing Review has shown, demonstrating just how higher property prices have affected such areas.

The study found that the average price of a property in the countryside was 7.1 times the average yearly salary, in comparison to a multiple of 6.2 per cent in built-up areas.

This is likely to be a main factor in first time buyers accounting for just 17 per cent of all buyers in rural areas, compared with a figure of 33 per cent in cities and towns.

"Those living in rural areas face particularly tough housing market conditions. In general, higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas," commented Halifax chief economist Martin Ellis.

"Many young people, in particular, are therefore finding it tough to find a foot on the property ladder. This difficult situation is compounded by lower levels of provision of social housing in rural areas," Mr Ellis added.

Earlier this year the National Housing Federation (NHF) warned that higher house prices were threatening to turn the countryside into "a theme park for the rich".

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