House values in rural parts of the UK are rising at rates on par with urban cities, research has shown
Property prices in the UK countryside have grown by 5.1 per cent across the last 12 months, according to research from Zoopla.
That compares to annual property price growth of 5.7 per cent in the urban market meaning there is very little difference between the two.
The average value of a rural home is now £264,338 according to the study which is actually 24 per cent or £51,727 higher than a typical urban home outside of London.
Rural properties in the East of England noted the largest rise in values over the past year and jumped by 6.5 per cent – the equivalent to £17,098.
The South East also saw rural prices increase by six per cent or £22,157 in the same period, meaning purchasing a property in this region can cost more than £66,000 more.
High demand and good returns
For property investors and those hunting for buy to let opportunities, these regions represent great opportunities since demand for homes is high.
Targeting towns and cities in regions where rural properties are more expensive can also yield strong returns since initial outlays for homes should be lower.
As an example, rural properties in the West Midlands cost nearly £74,000 more to purchase when compared to an urban home in the same area – the highest premium for rural property in the UK.
Meanwhile Gerrards Cross in Buckinghamshire is the most expensive rural area in the whole of England. The average home costs £817,386 here and represents a rise of more than £45,000 compared to a year previously.
Zoopla’s study also showed that city property ads in the East of England and the South East saw strong annual growth of 7.5 per cent and 6.7 per cent respectively.
This follows familiar trends which often report the strongest property prices in England’s South East and London but has extended it to show that rural areas are just as lucrative as urban ones.
“Over the past year house price growth has spread and rural retreats which are commutable to the amenities and jobs of urban centres have become highly sought after,” explained Lawrence Hall of Zoopla.
16th March 2015