Rural Property Prices Show Resilience
Recent figures released by Bank of Scotland reveal that property prices in rural areas in Scotland fell by less than those in urban areas during the last twelve months. The Bank of Scotland Rural Housing Review shows that the average house price in rural areas fell 11% over the last 12 months and now stands at £166,813. In comparison, the average urban house price declined by 13% over the same period and now stands at £143,454.
Commenting on the results Neil Harrison, ESPC marketing manager said: “Since the turn of the year house prices have stabilised, but in most areas values are around 10-15% below peak levels. It is not unsurprising that prices in rural areas have shown somewhat more resilience than those in urban areas. Restrictions in lending hit first-time buyers hardest as many of them did not have the large deposits in place that were required to secure mortgage funding.
It was the stalling in first-time buyers’ ability to get on the property ladder that was a kickstart to the drop in prices last year. Although the proportion of first-time buyers in rural areas has increased slightly, the rural market is still less reliant on them than urban areas are. Other factors such as improving transport links have also made the countryside an attractive option for many buyers and as a result, the effect of less new blood in the market was a little less pronounced outwith urban areas.”