The South Hams is one of the least affordable rural areas in the country, according to a new report.

Halifax's third annual Rural Housing Review shows that the average price of a property in the South Hams is 10.2 times average annual local earnings.

This is the second highest ratio in rural England, just behind Carrick in Conrwall, where average prices are 10.3 times average wages.

The average South Hams property now costs a staggering £318,266, while the average salary is just £31,236.

Martin Ellis, Halifax: "Those living in rural areas face particularly tough housing market conditions."

The South Hams is also the second home capital of rural England, the report shows.

Eleven per cent of houses in the area are used on a part-time basis, 3 per cent higher than second-placed North Cornwall, where 8 per cent of properties are holiday homes.

The Halifax report also shows that nationally the average cost of a home in a rural area is 14 per cent higher than the average urban house price.

Housing in rural areas, such as the South Hams, is characterised by higher prices, far fewer first-time buyers, lower levels of social housing and much higher proportions of second homes than in urban areas, according to the Rural Housing Review

Martin Ellis, chief economist at Halifax, 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."