Only 40% tax ratepayers can afford to buy housing in rural areas, according to new research from Hometrack.

It says the cost of getting onto the bottom rung of the property ladder is some 42% higher in rural areas compared to urban and that just 12% of all homes being built are in rural areas.

Hometrack says that the income needed to access the first rung of the property ladder in a rural location is £46,500 – the threshold for higher (40%) rate income tax kicks in at £42,475. This compared to urban areas, where the average income needed to purchase a comparable home is almost £14,000 less (£32,750).

The research shows that the rural-urban divide is not confined to the south of the country but is evident across all regions.

Richard Donnell, director of research at Hometrack, said: “While there is general acceptance that more homes need to be built our analysis is not suggesting more development in rural areas. What is needed is greater consensus on how best to meet the requirements of those who live and work in local housing markets.””