Smaller price drops in rural areas

Rural areas are witnessing smaller drops in house prices than other regions in the UK, new data has suggested.

Research from Halifax has indicated that property values have fallen more steeply in urban areas of Britain.

The firm's Rural Housing Review found that there was a 13 per cent fall in property prices in rural areas in the past 12 months.

This compares to an average decrease of 18 per cent in urban regions, which could provide more opportunities for landlords to purchase properties in towns and cities.

Suren Thiru, economist at Halifax, said that quality of life benefits of living in the countryside have meant house values in rural areas have been less affected by the economic downturn.

She commented: "Higher prices, together with generally lower earnings, mean that housing in rural areas remains significantly less affordable than in urban areas.

"The difficulties this presents for households living in the countryside are further aggravated by the relatively low levels of social housing in rural areas."

Rural homes cost £203,535 on average, according to Halifax.

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