Rural Scotland ‘out of reach’

Published 04th Sep 2007

Housing in rural areas in Scotland is characterised by higher prices, far fewer first-time buyers, lower levels of social housing and much higher proportions of second homes than in urban areas, according to the latest annual Bank of Scotland Rural Housing Review...

The average property price in rural areas is 5.8 times average annual earnings compared with a ratio of 5.2 in urban areas. The average level of house prices in rural areas is £177,007. This is 12% higher than the average urban house price of £157,519.

House prices in rural areas have increased, on average, by 112% in the last five years. This compares to a 107% rise in urban areas. There are far fewer first-time buyers (FTBs) in rural areas, accounting for only 18% of all buyers compared with 31% in urban areas.

Tough market conditions
In rural areas, 22% of the housing stock is social housing compared with 31% in urban areas. Second homes account for 3.5% of housing in rural areas. This is seven times higher than in urban areas where only 0.5% of the housing stock is second homes.

Martin Ellis, Chief economist at Bank of Scotland, commented: "Those living in rural areas face particularly tough housing market conditions. In general, higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas.

“Many young people, in particular, are therefore finding it tough to find a foot on the property ladder. This difficult situation is compounded by lower levels of provision of social housing in rural areas."

Source: ' Assetz '

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