HOUSEBUYERS are paying a premium for property in the countryside, but the gap is narrowing.

Bank of Scotland (B0S) figures have revealed that while many people dream of retiring to the peace of the countryside, buyers can expect to pay more than £20,000 more for a home than they would in towns and cities.

The high coast of property is said to be driving first-time buyers into urban areas with the average cost of a home more than six times the typical local wage in some regions.

However, house prices in urban areas are growing faster than those in the countryside, and Scotland is home to one of the most affordable rural areas in the UK.

The BoS Rural Housing Review found that property prices in the countryside are on average £27,047 higher than in urban areas up from £17,539 over the last decade.

East Ayrshire was said to be the area where property was the most affordable, while Aberdeenshire and East Lothian were the most expensive.

Nitesh Patel, economist at Bank of Scotland, said, "Living in the countryside is an aspiration for many homeowners, attracted by the prospect of a better quality of life, open space and a cleaner environment. However, this aspiration comes at a cost with average property values almost a fifth higher than in urban areas.

"A side-effect of rising property values is that housing affordability has become an increasing concern in many rural areas, particularly in Aberdeenshire and East Lothian where those on average incomes typically find it difficult to enter the market. This, in turn, prices many first-time buyers out of the housing market.”

The review examined the difference between wages and the cost of property, with the average property price of £115,394 in East Ayrshire 3.8 times the local average annual earnings of £30,299.

Dumfries and Galloway was the second most affordable rural region in Scotland, with the £128,245 average house price 4.5 times greater than average earnings of £28,691.

Argyll and Bute, where average house prices were said to be £153,508, is Scotland’s third most affordable with the price of property 5.1 times the annual local earnings of £30,065.

First-time buyers account for 43 per cent of all mortgage financed purchases in Scottish rural areas.

This is lower than in urban areas where first time buyers account for half (50%) of such purchases. Affordability difficulties were said to be the key factors behind the lower level of first-time buyers in rural areas.

Estate agents said that the difference in the average price of property between rural and urban areas was misleading as it was mainly driven by the quality of housing stock in the countryside compared to that in towns and cities.

Average prices beyond town boundaries are being pushed up by the number of larger country homes for sale, while those inside city limits get dragged down by lower value sales.

Faisal Choudhry Director of Scottish Research at Savills, said: "What we have found is that in cities and towns prices have risen by 3 per cent, while those in the country and in villages have fallen by 3 per cent.

"Moving to the country from the city is often a lifestyle choice and people expect to get value for money."