Rural housing is less affordable

Housing in rural areas is characterised by higher prices, far fewer first-time buyers, lower levels of social housing and much higher proportions of second homes than in urban areas, according to the latest annual Halifax Rural Housing Review.

Housing is significantly less affordable in rural areas

House prices in rural areas are less affordable than in urban areas. The average property price in rural areas is 7.1 times average annual earnings compared with a ratio of 6.2 in urban areas. This difference reflects the combination of generally higher property prices and lower average earnings in rural areas.

Carrick in Cornwall is the least affordable rural local authority in Great Britain. The average house price in Carrick of £269,241 is 10.3 times local annual average earnings of £26,217.

The next least affordable rural districts are South Hams in Devon (10.2), North Cornwall (10.1) and Restormel in Cornwall where house prices are (9.5) times average earnings.

Nine of the ten least affordable rural areas in Britain are in the South West. The exception is Rutland in the East Midlands.

Western Isles in Scotland is the most affordable rural local authority in Great Britain. The average house price in the Western Isles of £110,015 is 4.3 times local average annual earnings of £25,459.

Rural house prices are 14% higher than in urban areas

The average level of house prices in rural areas is £246,104. This is 14% higher than the average urban house price of £214,998.

Chiltern in Buckinghamshire is the most expensive rural local authority with an average house price of £474,850. The next most expensive rural areas are Waverley in Surrey (£444,819), South Oxfordshire (£389,004) and Tandridge in Surrey (£382,585).

Rutland is the most expensive rural local authority outside southern England where prices average £293,558. Malvern Hills in the West Midlands (£278,208) and Ribble Valley in the North West (£267,096) are the next most expensive rural areas outside the south.

Western Isles is the least expensive rural local authority in Britain with an average house price of £110,015. The least expensive rural authority in southern England is Fenland in Cambridgeshire where prices average £155,242.

Rural House Prices have risen by 72% in the past five years

House prices in rural areas have increased, on average, by 72% in the last five years, from £143,037 in 2002 to £246,104 in 2007. This is slightly below the 80% rise in urban areas over the same period from £119,255 in 2002 to £214,998 in 2007.

Pendle in the North West is the rural district that has recorded the highest house price growth in the last five years. Average prices in Pendle have risen by 162%, from an average of £53,247 in 2002 to £139,747 in 2007. Carmarthenshire (159%) and East Ayrshire (151%) have experienced the next highest house price growth.

There are far fewer first-time buyers (FTBs) in rural areas

FTBs account for only 17% of all buyers in rural local authorities compared with 33% in urban local authorities. Affordability difficulties are the key factor behind the much lower level of FTBs in rural areas.

Caradon in Cornwall is the rural district with the lowest proportion of FTBs (8%). East Dorset (South West) and Castle Morpeth (North East) have the next lowest proportions (both with 10%).

Ceredigion in Wales has the highest proportion of first time buyers (47%). Western Isles (40%) and Pendle (37%) have the next highest levels of FTBs.

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.

Wealden in East Sussex is the rural local authority with the lowest proportion of social housing. 7% of Wealden's housing stock is social housing.

Kennet and Wear Valley have the highest levels of social housing. Social housing accounts for 21% of the total housing stock in both local authorities.

Rural Britain has nearly five times more second homes than urban areas

Second homes account for 1.8% of housing in rural areas. This is nearly five times higher than in urban areas where only 0.4% of the housing stock is second homes.

Argyll & Bute in Scotland and South Hams in Devon are the rural local authorities with the highest proportions of second homes in Great Britain. Second homes account for 11% of all homes in Argyll & Bute and South Hams. North Cornwall, Gwynedd and South Lakeland (all 8%), have the next highest proportions of second homes.

Three of the ten rural areas in Britain with the highest levels of second homes are in the South West, three in Scotland, two in the North West and one each in the East of England and Wales.

Planning Applications in rural England are 52% higher than in urban areas

There were 161 planning applications per 10,000 head of population in rural areas in 2006/07. This was 52% higher than the 106 applications per 10,000 people in urban areas.

Cotswold had the most planning applications with 264 planning applications per 10,000 head of population. North Cornwall (262) and Penwith (252) had the next highest levels of planning applications.

Four of the five rural areas in Britain with the highest levels of planning applications per head of population in 2006/07 are in the South West.

Martin Ellis, chief economist at Halifax, said: "Those living in rural areas face particularly tough housing market conditions. In general, higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas. Many young people, in particular, are therefore finding it tough to find a foot on the property ladder. This difficult situation is compounded by lower levels of provision of social housing in rural areas."