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Guest Charlie The Tramp

Rural House Prices Outstripping City

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Guest Charlie The Tramp
Rural housing is less affordable than the urban alternative, with average property prices more than seven times that of the typical wage, a report has indicated.

Rapid house price inflation has pushed the average property value in the country up to £246,104, more than £30,000 higher than that of a town house.

With earnings generally lower outside city areas, first-time buyers are increasingly being frozen out of the rural property market, it is claimed.

Research from the Halifax bank found that the average property price in rural areas is 7.1 times the average annual earnings. This clearly exceeded an income multiple of 6.2 times salary for homeowners in urban areas.

Rural house prices outstripping city

As a result there tend to be fewer first-time buyers in the country - they make up only 17 per cent of rural home purchasers, compared to 33 per cent in towns or cities.

The plight of young country dwellers is not helped by lower levels of social housing.

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.....probably due to at least four factors.....second homes for city dwellers who only use the property now and again...others purchase to holiday let .....others buy to retire from city areas....others (relatively new) seek the 'country way of life' armed with broadband through which they commute (telecommute)......for the locals the future is to leave....they cannot afford to live there.....unless they have their own businesses...wages are to low . ... :o:o:o

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.....probably due to at least four factors.....second homes for city dwellers who only use the property now and again...others purchase to holiday let .....others buy to retire from city areas....others (relatively new) seek the 'country way of life' armed with broadband through which they commute (telecommute)......for the locals the future is to leave....they cannot afford to live there.....unless they have their own businesses...wages are to low . ... :o:o:o

Exactly right.

Edited by bachelor

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.....probably due to at least four factors.....second homes for city dwellers who only use the property now and again...others purchase to holiday let .....others buy to retire from city areas....others (relatively new) seek the 'country way of life' armed with broadband through which they commute (telecommute)......for the locals the future is to leave....they cannot afford to live there.....unless they have their own businesses...wages are to low . ... :o:o:o

All true. Which is why I had to sell up/leave. There were no jobs above minimum wage - and very seasonal - where I was living.

You can only keep trying for so long before you realise that there's no chance to even stand still, let alone get ahead.

What the report didn't spell out exactly was that in urban areas property is available to rent. But in a lot of rural/coastal areas, there is an overwhelming amount of holiday lets, so locals do not have access to private renting even ... at an affordable price. Their only choice is to rent a holiday home - at holiday home prices. Which of course is more than they earn.

In rural areas the issue of "affordable housing" is also about "any access to any housing whatsoever". The houses simply are not available, they do not exist, to private rent. People are living in sheds and garages. I know this. I've seen them, been in them.

Why would a landlord rent a 2-bed flat to somebody year round for, say, £650-700/month, when they can rent it out for £500-1000/week during the holiday seasons. And holiday seasons for rentals have extended a lot in recent years as tourism has tried to attract people into activity-driven breaks.

However .... as the balance tips the other way .... I believe a lot of these BTL/holiday home lets/2nd home owners will be wanting to ditch their depreciating asset that isn't giving them anywhere near the returns they expected or needed.

So things might improve in some areas if those expensive houses have to be sold to locals who have a very very limited mortgageability.

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I moved out to the country nearly three years ago. Having two young children, it was the best decision i could have made.

There is a premium paid for living there but its no different than moving from a poor area to a nice area in the city. Its a more desirable place to live than where we lived before. I would rather look out over fields than look at a new development of flats filled with antisocial louts.

For that benefit, you pay a premium. The reason that there is a premium is that it more desirable and therefore due to supply and demand, people pay more. Its market forces.

The government goes to great lengths to maintain affordable housing in the countryside by restrictive planning laws.

For coastal areas that are being flooded by people buying holiday homes that are then left empty, i can understand why that would be frustrating.

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I moved out to the country nearly three years ago. Having two young children, it was the best decision i could have made.

There is a premium paid for living there but its no different than moving from a poor area to a nice area in the city. Its a more desirable place to live than where we lived before. I would rather look out over fields than look at a new development of flats filled with antisocial louts.

For that benefit, you pay a premium. The reason that there is a premium is that it more desirable and therefore due to supply and demand, people pay more. Its market forces.

The government goes to great lengths to maintain affordable housing in the countryside by restrictive planning laws.

For coastal areas that are being flooded by people buying holiday homes that are then left empty, i can understand why that would be frustrating.

As long as you dont start whining about the smell of the shit spread on the fields, or the tractors 'wreaking' the 'Idyllic country lanes' im sure you will fit in just fine <_<

Edited by HenryWeston

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I too moved to the country (ish) a few years ago and it was the right thing to do, particularly in light of the recent shootings, crime stories etc.

Having said that, prices in my village are beyond laughable. The latest entry is this one:

http://www.rightmove.co.uk/viewdetails-915...=1&tr_t=buy

OK, its a nice three bed semi but £625k!! Its not too different to my first house in guldford which traded for £100k in more reasonable times.

In my village, you're looking at 600k to 1m for anything these days. You can't tell me that we'll end up with anything like a balanced community or that my kids will have a chance of buying here.

I fully expect anyone buying at these stupid prices to be well out of pocket in a few year's time.

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This is just another in a very long line of Halifax press releases - generally issued on bank holiday weekends or when there's negative news on the housing market designed to reinforce the message that house prices are really really high but dont expect them to get any cheaper - its a pile of shite just ignore it - like the media should have done.

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Country prices are out of this world and now what used to be grubby villages full of extras from Straw Dogs (like the one I grew up in) are now marketed as picture-postcard stuff and many have their own millionaires rows of McMansions.

You see places for sale for 500k that looks like the kind of places my parents were once looking to buy on one-and-a-bit salaries. You see homes where kids from school used to live who's dad was a truck driver and who's wife was a housewife on for 275k.

It's quite sad as I used to like the Westcountry because the country wasn't a posh person's playground to the same extent as the Home Counties but the local colour's fast becoming wiped out.

The counry's turning into honey-suckled museums for rich commuters and telecottagers.

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As long as you dont start whining about the smell of the shit spread on the fields, or the tractors 'wreaking' the 'Idyllic country lanes' im sure you will fit in just fine.

If thats the biggest thing i have to worry about then fine with me. Would happily cope with a slow moving tractor and a couple of days muck spreading compared to the attempted break ins to our house and the garage being broken into on a regular basis. I dont worry about the car being stolen and i dont have antisocial neighbours to cope with. Yes i love the tractors and the spread of muck on the fields. My kids are growing up in a better environment with plenty of space and nicer surroundings, but best of all, the schools they are going to are much better than the ones by where we used to live.

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Guest Charlie The Tramp
My kids are growing up in a better environment with plenty of space and nicer surroundings, but best of all, the schools they are going to are much better than the ones by where we used to live.

I find the vast majority of country kids better mannered, considerate, and respectful not like the louts you find in Cities and Big Towns. The people are much more friendly and the greatest thing is you can actually breathe fresh air. ;)

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I find the vast majority of country kids better mannered, considerate, and respectful not like the louts you find in Cities and Big Towns. The people are much more friendly and the greatest thing is you can actually breathe fresh air. ;)

until all the 'townies' move here and ruin it.... <_<

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On this basis, the home counties / rural HPC could well outstrip the city / urban HPC.

....a lot of the rural HPI is created through second homes and holiday lets which are generated by MEWing from town properties......once the first domino falls it's a short time before the lot caves in....... :o:o:o

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