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Where are homes the most difficult to buy?

Urban first-time buyers fare almost twice as well than their rural counterparts, new research indicates.

There are far fewer first-time buyers in rural areas, accounting for only 24% of all buyers compared with 41% in urban areas according to the latest Halifax English Rural Housing Index.

House prices in rural areas are significantly less affordable than in urban areas, said the report. The average property price in rural areas is 6.7 times average annual earnings compared with a ratio of 5.6 in urban areas.

The least affordable rural local authority in England is North Cornwall where the average house price of £212,960 is 10.0 times local annual average earnings of £21,367.

North Lincolnshire is the most affordable rural local authority in England with an average house price of £121,539, 3.8 times local average annual earnings of £31,720. The most expensive rural local authority is Chiltern, where the average house price is £384,552.

The report said the average home in rural regions cost £208,699, 19% more than the average for towns and cities of £176,115.

Martin Ellis, Chief Economist at Halifax, said, "Housing market conditions are particularly tough for those living in rural areas. Higher house prices combined with lower average earnings mean that property is less affordable than in urban areas. This is making it especially difficult for first-time buyers to get a foot on the property ladder whilst, at the same time, there is less provision of social housing to cater for the needs of those living in rural areas."

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Ten least affordable rural local authorities in England, 2005
Local authority	Region	House prices in 2005	Average employee earnings (£ per annum) 2005	Price to earnings ratio
North Cornwall	South West	212,960	21,367	10.0
South Hams	South West	248,463	26,744	9.3
Waverley	South East	355,242	38,381	9.3
Penwith	South West	214,382	24,040	8.9
Chiltern	South East	384,552	43,472	8.8
Carrick	South West	225,724	25,756	8.8
Uttlesford	East	294,974	33,665	8.8
South Shropshire	West Midlands	212,564	24,528	8.7
Cotswold	South West	260,883	30,930	8.4
North Norfolk	East	181,342	22,012	8.2

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Ten most affordable rural local authorities in England, 2005
Local authority	Region	House prices in 2005	Average employee earnings (£ per annum) 2005	Price to earnings ratio
North Lincolnshire	Yorkshire & Humberside	121,539	31,720	3.8
Teesdale	North East	134,388	35,058	3.8
Pendle	North West	101,317	24,830	4.1
Wear Valley	North East	109,490	24,955	4.4
East Staffordshire	West Midlands	129,796	27,030	4.8
West Lindsey	East Midlands	138,423	28,631	4.8
Alnwick	North East	146,307	29,614	4.9
Copeland	North West	134,949	27,118	5.0
Allerdale	North West	133,028	25,990	5.1
North Wiltshire	South West	183,518	35,599	5.2
Source: ONS, Halifax House Price Database

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