It’s a classic story of this or that. In this blog, however, we won’t be talking about Aesop’s friendly mice, but investors intending to make right the right decision: is it better to invest in a city property or in a rural property?

Here are some of the key factors that you will need to think about to help narrow down the answer.

Appreciation Rate

Historically, properties in urban areas tend to appreciate faster than those in rural areas. The jump in value can be greater for locations near the city since developments tend to expand and convert the city perimeters.

In recent years, however, the UK has been observing an apparent peculiarity with rural houses gaining higher increases than those in the cities. Rural housing prices in England and Wales are skyrocketing at a rate of 14.2% each year. If you are planning to invest in the countryside with the intent to resell later on, then things are looking for you.

Selling Prices

While the rate of value increase is significantly faster in the countryside, you have to take note that pound per pound, the existing prices are still higher in the cities. According to the latest House Pricing Index by the UK Land Registry, London still tops the list with an average of £ 541,720.

If you choose to look at regions like Yorkshire and the Humber, the average is only £214,036 by comparison.

Property Size

Finding a spacious property is expectedly challenging in city areas, and if ever you find one, you can expect tight competition and a high price. If you are looking for a bigger place, then you will have better chances in the countryside market.

According to the English Housing Survey by the Ministry of Housing, Communities & Local Government, the average floor space of residences in rural areas is 123m² while for urban areas is only 80m². A big factor in this is that many city dwellings come in the form of flats.
Read my recent blog, “Different Types of Residential Properties in the UK”.

Buying Competition

Because of higher demand, city and sub-urban houses can sell more quickly. These properties remain in the market for a less amount of time. If you want to invest here, you may not have the luxury of time to choose and decide. You have to be ready to close a deal on short notice to be ahead of the competition.
In particular, the fastest-selling locations in the country are those in the residential districts on the city outskirts. According to a survey just earlier this year, the top three are namely Dartford, Redditch, and Test Valley. On average, it only takes a swift two weeks for a property to get sold in these coveted sub-urban addresses.

Available Selection

Another factor to consider is the availability and diversity of options. Though they tend to sell faster, you can expect that cities still have a deeper and wider selection of properties on the market at any given time.

They also have the advantage of better publicity. You have a better chance of finding the listings online or acquiring contact information to inquire about the property.

Countryside properties for sale, on the other hand, may not always be readily published on the internet. You may have to actually visit the location and prospect properties in person to know the selection. Partnering with a local agent would be advisable.

Before you go…

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