Bank of Scotland highlights premium for rural mortgage holders

Date:Monday 29th November 2010
Author: Max Freedman

Mortgage holders living in rural areas of Scotland have seen the value of their homes shoot up in the past decade, according to new research by the Bank of Scotland.

But Suren Thiru, housing economist at the financial services provider, pointed out that this increase in property prices has inevitably lead to a drop in affordability for such houses.

"With the lifestyle benefits associated with residing in the countryside still resonating with homebuyers, rural properties continue to trade at a significant premium," the Bank of Scotland mortgages expert noted.

The firm's rural housing review was published this week and showed the average house price in rural Scotland went up by 130 per cent over the past ten years, which is the largest rise across the whole of Great Britain for the period.

Recently, the company unveiled its latest index of leading indicators - with the data suggesting Scotland's economic recovery is likely to slow down in the next few quarters.