First-time buyers living in rural areas are struggling to afford current high prices compared to the average income, according to a new survey.

The latest Halifax English Rural Housing Index found house prices in rural areas are significantly less affordable than in urban areas.

Rural property prices have risen 89 per cent in the last five years, from an average £110,237 in 2000 to £208,691 in 2005 and affordability is a key factor behind a low level of first-time buyers (24 per cent of all buyers compared with 41 per cent in urban areas).

The average rural home is also 6.7 times the average annual earnings compared with a ratio of 5.6 in urban areas.

First-time buyers struggle the most in North Cornwall where the average house price at £212,960 is ten times local annual average earnings of £21,367.

The most affordable rural area is North Lincolnshire where the average house price is 3.8 times the local average earnings at £121,539 with earnings of £31,720.

"Housing market conditions are particularly tough for those living in rural areas," said Martin Ellis, chief economist at Halifax.

"Higher house prices combined with lower average earnings mean that property is less affordable than in urban areas. This is making it especially difficult for first-time buyers to get a foot on the property ladder whilst, at the same time, there is less provision of social housing to cater for the needs of those living in rural areas."