Tuesday, March 31, 2009
Category:
Secured Loans
According to the latest annual Halifax Housing Review, house prices in rural areas have not dropped as much as house prices in urban areas during the past 12 months.
In fact, the average house price in rural areas of Britain saw a 13 percent reduction, compared to an 18 percent reduction in urban areas. The value of an average rural property stands at £203,535, which is 21 percent higher than the value of an average urban property at £168,376.
In relation to affordability, the average rural property price is currently 6.3 times average gross annual earnings, which marks the lowest ratio since 2002. In contrast, the average urban property price is represented by a ratio of 5.2.
The Halifax Housing Review also showed that 27 percent of rural home buyers with a mortgage are first time buyers, which is the highest percentage since the year 2000. Despite this increase, the percentage of first time buyers in rural areas remains lower than in urban local authority areas at 44 percent.
Economist at Halifax, Suren Thiru, commented: "Homes in rural areas continue to command a marked premium over urban locations, partly reflecting the quality of life benefits that many people associate with living in the countryside. Higher prices, together with generally lower earnings, mean that housing in rural areas remains significantly less affordable than in urban areas. The difficulties this presents for households living in the countryside are further aggravated by the relatively low levels of social housing in rural areas."
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Homeowners who are keen to put their personal stamp on a new property, or are looking to transform their current property into the ideal living space, could consider taking out a secured loan to fund an array of projects. One of many finance options available, a secured loan for home improvements could allow the borrower to set about turning those dream surroundings into a reality. For example, where extra space is desired, an extension could be built or a conservatory added. In addition, unused loft space could be converted into an extra functional room – perhaps a spare bedroom or office. A secured loan could also be used to carry out home improvements around the exterior of the property, perhaps revamping garden areas to create the ideal play space for children.
