Rural life is only for the rich, says Hometrack

Only higher-rate income tax payers can afford to buy housing in rural areas, property analyst Hometrack has said.

It says that the cost of getting on to the first rung of the property ladder is 42% higher in rural areas compared to urban, and that just 12% of all new homes being built are in the countrywide.

Hometrack, which provides market intelligence to local authorities, housing associations and developers, says that someone trying to get on the property ladder in a rural location would need to earn a minimum of £46,500.

In comparison, someone buying for the first time in an urban location would need on average to earn £32,750.

Although sums differ markedly across the country – for example, someone buying in a rural area in the South-East would need to earn £68,000, while someone buying in the North-East countrywide would need to earn £34,000 – the urban/rural divide is obvious through all regions.

The average price of a first-time buyer property in a rural area is £187,715 compared with £133,005 in urban locations, says Hometrack.

The Hometrack research is intended to feed into the current debate over planning reforms. But Hometrack itself does not offer any solutions, other than saying that housing need should be examined locally.