House prices rise in countryside

The English countryside is proving to be a hotbed of recovery in the property market.

Landlords who have purchased property in rural areas near London could see good returns on their investments, the Residential Landlord's Association (RLA) has indicated.

The group found that country house prices in areas located close to the capital increased by 0.7 per cent in the second quarter of 2009.

This compares to a drop in values across the rest of the country, with the RLA estimating a 0.9 per cent average decrease.

"Landlords and homeowners with residential properties in rural areas close to London are fortunate, as demand is highest in these areas," stated the RLA.

"A growing number of Londoners have sought rural homes close to the capital, but these are increasingly hard to come by as relatively few are on the market at the moment."

House prices in London remain higher on average than in any other area of the UK.

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