Buy-to-let
According to the Royal Institution for Chartered Surveyors (RICS), city bonuses have fuelled higher demand in the residential farmland sector as purchases from amenity and lifestyle buyers have recovered strongly since the turn of the year.
The average property price in rural areas is 6.7 times average annual earnings compared with a ratio of 5.6 in urban areas, accoring to the latest Halifax house Price report.
There are fewer first-time buyers in rural areas, accounting for only 24 per cent of all buyers compared with 41 per cent in urban areas.
The report also revealed that the least affordable rural local authority in England in North Cornwall where the average house price of £212,960 is ten times local annual average earnings of £21,397.
North Lincolnshire is the most affordable rural local authority in England with an average house price of £121,539 and the most expensive is Chiltern, where the average house price is £384,552.
Martin Ellis, Chief Economist at Halifax, said: “Housing market conditions are particularly tough for those living in rural areas. Higher house prices combined with lower average earnings mean that property is less affordable than in urban areas.
“This is making it especially difficult for first-time buyers to get a foot on the property ladder whilst, at the same time, there is less provision of social housing to cater for the needs of those living in rural areas.”
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