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Rural buyers need cheap mortgage deals

Date: Mon, 22 May 2006

Buyers planning to purchase a property in a rural setting may have to shop around for a cheap mortgage in order to afford their dream house.

A new study, conducted by Halifax, concluded that house prices in the countryside are rising significantly – even though incomes are generally lower. The research discovered that house prices are 5.6 times the average salary in towns and cities and this rises to 6.7 times average earnings in more rural areas.

In particular, buyers in northern areas of Cornwall are forced to pay an average house price of £212,960, which is ten times the local average salary of £22,367.

"Housing market conditions are particularly tough for those living in rural areas," said Martin Ellis, Halifax chief economist.

"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."

Therefore, rural purchasers are being advised to make sure they search out a good cheap mortgage with attractive rates and low repayments.


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