Rural-urban property price gap narrows, says new report
The price gap between properties in rural and urban areas is narrowing, according to a new review.
The Bank of Scotland report found that homes in the Scottish countryside are on average £17,231 more expensive than those in towns and cities.
However it also revealed that the price gap has dropped from £24,228 in the last five years.
It found that while prices are higher in rural areas, urban house prices are increasing at a faster rate.
The price of homes in the countryside rose by 14% between 2011 and 2016, while the cost of urban properties jumped 22%.
Other findings of the bank's annual rural housing review include:
- The most affordable areas for rural homes are East Ayrshire and Dumfries and Galloway;
- East Lothian and Perth and Kinross were the least affordable regions;
- First-time buyers account for 45% of all mortgage-financed purchases in Scottish rural areas;
- Getting on the property ladder is most challenging in East Lothian - there, just 37% of purchasers are first time buyers.
Graham Blair, mortgage director at Bank of Scotland, said: "Our How Scotland Lives research has shown that countryside living can have a positive impact on peoples' happiness, so it's to be expected that people will be attracted to living in the countryside and this does come with a premium.
"Affordability is often a key driver in any decision to purchase a home, with some rural regions more affordable than certain urban locations there are options for anyone considering an escape to the country."
|Affordability of homes in rural districts|
|Local Authority District||House prices 2016 (£)||Average earnings 2016||Price to earnings ratio|
|Dumfries and Galloway||133,462||28,960||4.6|
|Argyll and Bute||163,263||30,397||5.4|
|Perth and Kinross||186,512||32,614||5.7|