Rural housing was found to be less affordable than in urban areas

A rural housing review by the Bank of Scotland said such areas were characterised by higher prices and fewer first-time buyers.

The report also found lower levels of social housing than urban areas and a higher proportion of second homes.

The bank's chief economist, Martin Ellis, said young people were finding it hard to get on the property ladder.

The study found that the average property price in rural areas was 5.8 times average annual earnings, compared to 5.2 in urban areas.

The average house price in rural areas was �177,007, some 12% higher than the average urban house price of �157,519.

Higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas Martin Ellis Bank of Scotland

House prices in rural areas have increased, on average, by 112% in the last five years, compared to a 107% rise in urban areas.

First-time buyers accounted for only 18% of all purchasers in rural areas, compared to 31% in urban areas.

The review said second homes accounted for 3.5% of housing in rural areas - seven times higher than in urban areas.

East Lothian was the least affordable rural local authority in Scotland, with an average house price of �195,983 - 6.5 times the local annual average earnings of �30,283.

The Western Isles was the most affordable rural local authority in Scotland, with an average house price at �110,015 - 4.3 times the local annual average earnings of �25,459.

'Difficult situation'

Mr Ellis said: "Those living in rural areas face particularly tough housing market conditions.

"In general, higher average property prices, together with lower earnings, mean that housing is less affordable than in urban areas.

"Many young people, in particular, are therefore finding it tough to find a foot on the property ladder. This difficult situation is compounded by lower levels of provision of social housing in rural areas."