Rural-urban house price gap ‘increasing’

The gap between the average price of a home in the countryside and in towns and cities has grown, new research has revealed.

A study by Halifax has found that in the past 12 months the typical rural home has seen its price dip by 13 per cent to £203,535, compared with an 18 per cent fall to £168,376 for urban dwellings.

This has led to the gap in average price rising from 15 per cent to 21 per cent during that time.

Such a situation may impact on those looking for the best mortgage deal, with 44 per cent of transactions in urban districts involving first-time buyers, compared with only 27 per cent in rural areas.

However, prices in London have held up better than most areas, according to the Land Registry.

The capital has seen a price drop of 10.2 per cent in the past year, equal to the West Midlands and bettered only by Wales, where the drop was just 8.3 per cent.

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