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First-time Buyer

Rural properties command 26% premium

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
12/11/2014

Properties in the British countryside command a £46,600 premium, according to Halifax, with average prices 26 per cent higher than urban homes.

This premium is found in all regions, though the amount differs greatly by region. According to Halifax it is greatest in the West Midlands, where a house in the country commands a premium of £88,781, and lowest in the North East.

The gap between urban and rural house prices is narrowing, however. House prices in rural areas have risen more slowly than their urban counterparts. This is due largely, Halifax says, to the high number of first-time buyers in cities. Just 47 per cent of rural homes were purchased by first time buyers, compared to 54 per cent in urban areas.

The proportion of social housing is also lower in rural areas. Social housing accounted for 12 per cent of the housing stock in rural areas, compared to 15 per cent in urban areas.

Martin Ellis, housing economist at Halifax, said: “It typically costs more to buy in rural areas with a substantial premium existing in all regions of Great Britain. The relatively high prices, however, put rural homes out of 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.”


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