Rural house prices increase fastest

Homes in the UK countryside have increased in value by nearly £600 a month in the last decade to be worth £27,000 more than urban properties, Halifax has revealed.

By The Newsroom

Published 4th Oct 2011, 07:00 BST

Its Rural Housing Review found that rural houses went up by £576 a month on average from 2001 to 2011 to reach an average of £196,316. Houses in urban areas saw an average jump of £519 a month in the same period, to be worth an average of £169,353.

The South West includes eight of the 10 priciest rural areas when compared with local earnings.

West Dorset was named as the least affordable rural area, with houses costing £256,332 – eight times more than local gross average earnings of £31,992.

Copeland in Cumbria is the most affordable, with a typical house price being £122,635, 3.3 times more than the average wage of £37,280.

House prices in larger towns and cities increased by 58 per cent over the last 10 years, while rural homes rose 54 per cent. Halifax said that since the 2007 housing downturn rural property prices had dropped by 22 per cent, compared with 23 per cent in urban locations.