This premium is found in all regions, though the amount differs greatly in different parts of the country. According to Halifax, it is greatest in the West Midlands, where a house in the country commands a premium of £88,781, and lowest in the North East.
The gap between urban and rural house prices is narrowing, however. House prices in rural areas have risen more slowly than their urban counterparts. This is due largely to the high number of first-time buyers in cities. Just 47% of rural homes were purchased by first-time buyers, compared to 54% in urban areas.
The proportion of social housing is also lower in rural areas. Social housing accounted for 12% of the housing stock in rural areas, compared to 15% in urban areas.
Martin Ellis, housing economist at Halifax, said: “It typically costs more to buy in rural areas with a substantial premium existing in all regions of Great Britain. The relatively high prices, however, put rural homes out of reach for many, particularly the young. This is reflected in first-time buyers accounting for a smaller proportion of homebuyers in the countryside than in urban areas.”
