Rural rental demand set to rise

People hoping to live in rural areas could increasingly turn to rental options over home ownership as the average price of a home in the country soars above the cost of urban house purchase, figures from HBOS have suggested.

While the average urban British home is worth £214,998 on average, rural properties are worth £246,104, which could constrain affordability for many UK buyers.

In the countryside, the average property price was 7.1 times average annual earnings for local employees, the study showed.

"In general, higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas," commented Martin Ellis, chief economist at Halifax.

"Many young people, in particular, are therefore finding it tough to find a foot on the property ladder," Mr Ellis added.

Potential buy-to-let investors could do well to invest in rural areas, the study suggested, with a significant increase of interest likely among younger people who aspire to live in rural areas but cannot afford to buy.

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