HOMES in the Cotswolds are amongst the least affordable of Britain’s rural areas, second only to homes in the Chiltern district, according to latest research by the Halifax.

Countryside properties continue to command a substantial price premium over urban homes and are on average £46,575 (26 per cent) higher in price than in urban areas.

Despite the higher price for buying in the countryside the gap with urban prices is narrowing, and property prices have risen more slowly in rural areas during the past five years.

Between 2009 and 2014, the average price of a home in the countryside rose by 12 per cent compared with an average increase of 18 per cent in urban areas.

While prices have risen more rapidly in urban areas in most regions since 2009, a key factor behind the bigger increase in urban house prices has been the relative strength of prices in Greater London.

Excluding London, urban prices have risen by six per cent.

Martin Ellis, housing economist at Halifax, said: “It typically costs significantly more to buy in rural areas with a substantial premium existing in all the regions of Great Britain.

“The relatively high prices, however, put rural homes out of the reach for many, particularly the young.

“Country living is an aspiration for many Britons: the fresh air; the scenery; the slower pace; it all adds to the attraction – but this has its drawbacks.

“For many of those tempted, the high prices put rural homes out of their reach.

“First time buyers in particular are affected by high rural property prices, and consequently they account for a far smaller proportion of homebuyers than they do in urban areas.”

First time buyers account for 42 per cent of all mortgage financed purchases in rural areas, compared to more than half (54 per cent) in urban areas.

“The traditional British country pile has become less affordable, and it is proving more and more difficult to find fruitful results when foraging for houses in the country.”