New analysis from Open Property Group reveals that rural England is facing an affordability crunch, as house prices in the countryside outpace urban growth, despite lower average wages and higher living costs in remote areas. These shifting dynamics are challenging the long-standing assumption that rural life offers a more affordable and sustainable alternative to the city.
Once seen as a financial refuge from soaring city prices, the English countryside is now becoming increasingly out of reach for many homebuyers, particularly younger and lower-income households.
- +22% average house price increase in rural areas
- +17% average house price increase in urban areas
Wages in rural areas lag behind urban centres:
Median workplace earnings:
- Rural: £25,600
- Urban: £27,200
- Median house price in England: £290,000
- Median full-time earnings: £37,600
- National price-to-earnings ratio: 7.7x
- Peak UK inflation: 11.1% in Oct 2022
- Inflation as of May 2024: 2.0%
- Higher travel expenses due to commuting and lack of public transport
- Increased reliance on cars
- Fewer local amenities and social opportunities
Jason Harris-Cohen, Managing Director of Open Property Group states that: “House prices in rural areas have risen sharply, but wages haven’t kept up. What was once considered a cheaper alternative to city living is now pricing many out. Buyers need to consider not just price, but the total cost of rural life.”
“Rural communities are caught in a paradox: demand has driven prices skyward, but the local economy hasn’t followed suit. The result is a growing gap between what people earn and what homes cost — a key contributor to the rural housing crisis.”
