Housing less affordable in rural areas
The average house price across rural Great Britain is 15% more expensive than the average house price in urban areas, according to the latest annual Halifax Rural Housing Review. House prices in rural areas currently average £235,324, £31,034 higher than the average urban house price of £204,290.Eight of the ten most expensive rural LA's are in the South East
The most expensive rural local authority (LA) in Great Britain is Chiltern in Buckinghamshire with an average house price of £448,635. Waverley in Surrey (£396,605) and Tandridge in Surrey (£367,016) are the second and third most expensive rural areas. Eight of the ten most expensive rural LA's are in the South East; the exceptions are Uttlesford (£313,896) and East Hertfordshire (£309,832) in the East of England. All ten of the most expensive rural LA's are in southern England.
The most expensive rural LA's are also the top ranked rural local authorities by quality of life
Chiltern, Waverley and Tandridge, the three most expensive rural LA's, also have the best quality of life among rural LA's3. Residents of Chiltern - the most expensive rural LA - has the best quality of life amongst rural LA's with the healthiest and best paid residents. In addition, the majority of householders in Chiltern are owner-occupiers (80%) and the houses are larger than average (6.3 rooms). All ten of the top ranked LA's by Quality of Life as well as the ten most expensive rural LA's are in southern England.
Bridgnorth is the most expensive rural LA outside southern England
Bridgnorth in the West Midlands has the highest average price of any rural local authority outside southern England, at £268,579. South Northamptonshire (£257,986) and Derbyshire Dales (£255,455) are the next most expensive rural areas outside the south.
Pendle is the least expensive rural LA in Britain
The North West local authority of Pendle is the least expensive rural LA in Britain with an average house price of £129,887. Western Isles in Scotland (£137,319) and Copeland (£138,111) are the second and third least expensive rural areas in Great Britain. Just two - Waveney and East Lindsey - out of the ten least expensive rural LA's feature in the top hundred rural LA's by quality of life.
Housing Affordability
House prices in rural areas are more than seven times average annual earnings
As a result of higher house prices and lower average earnings, property in rural areas is generally less affordable than in urban areas. The average property price in rural areas is 7.3 times average annual earnings compared with a ratio of 6.1 in urban areas.
Seven of the ten least affordable rural local authorities are in the South West
North Devon in the South West is the least affordable local authority in Great Britain with an average house price (£252,792) that is 9.1 times local annual average earnings (£27,853). The next least affordable rural districts are East Devon and Kerrier in Cornwall, at 8.7, and North Norfolk and Penwith where average house prices are 8.4 times average earnings. Seven of the ten least affordable rural areas are in the South West.
Copeland is the most affordable rural LA in Britain
Six out of the ten most affordable rural LA's are in the East Midlands. With an average house price that is 3.9 times local average annual earnings, Copeland in the North West is the most affordable rural area followed by Bassetlaw in the East Midlands (4.5) and Pendle in the North West (4.5).
2 Includes Greater London, South East, South West and the East of England
3 Based on the Halifax Estate Agents 'Rural' Areas Quality of Life Survey.
First Time Buyers
First time buyers in rural areas account for 21% of all buyers
There are far fewer first-time buyers (FTBs) in rural areas with FTBs accounting for just 21% of all buyers compared with 37% in urban local authorities. The average house price paid by an FTB in rural areas (£150,767) is, however, 7% lower than the average urban house price for FTBs (£162,570).
South Hams has the smallest proportion of FTBs
South Hams in the South West is the rural LA with the lowest proportion of FTBs (7%) followed by Bridgnorth (10%) and South Northamptonshire (13%). At the other end of the spectrum, East Cambridgeshire in the East of England and Pendle have the highest proportion of FTBs (both 43%).
Social Housing
Social Housing in rural England is significantly lower than in urban areas
13% of the rural housing stock in England is social housing compared with 20% in urban areas. Kennet in Wiltshire and Wear Valley have the highest levels of social housing (21% in both). In contrast, Wealden in East Sussex has the lowest proportion of social housing (7%) of any rural area.
Suren Thiru, economist at Halifax, said: "Housing in rural areas is less affordable than in urban areas due to a combination of higher average prices and lower average earnings. The difficulties for home buyers in rural locations are particularly acute among first time buyers and are exacerbated by relatively low levels of social housing provision."