15 Sep

Home affordability 'worse in rural areas'

Home affordability 'worse in rural areas'

Those living in urban areas tend to find housing affordability to be better than those residing in the countryside, a new study has shown.

Halifax has revealed today that the average ratio of house price to income is 7.3 in rural districts and 6.1 in urban areas.

As well as incomes being higher in cities, the average house price in rural areas is higher, standing at £235,324 compared to £204,490 in towns and cities.

Seven of the ten least affordable local government districts are in the south-west, where incomes are lower than average but prices are higher, with North Devon topping this list.

The latest Land Registry figures show that Devon's average house price is £207,571, above the south-west regional average of £188,186.

Such trends may indicate a major market opportunity for buy to let investors in rural areas as less people can afford to get on the ladder.

This was shown in the Halifax study, with 21 per cent of sales being to first-time buyers in country areas, compared with 37 per cent in urban districts. ADNFCR-1222-ID-18779989-ADNFCR

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