Inherited half a house - what to do?

[bridgetjonesmassivepants]

My dad dies a few months ago and we nearly have probate - I am one of the Executors of the will. My brother and I got a half share in my dad's former house (About three hours drive away from me) which he had been renting out for three years after moving in with his new wife.
The house should hopefully sell for £160,000 on a good day. It currently has a good tenant who may be interested in extending her lease which ends in January for another two or three years.

Should I:
Buy my brother out and continue to let the property (gets £800 a month) I am a lower rate tax payer earning around £12000 a year. Will have to pay around £2500 in stamp duty.

Or should I take my half share and use most to buy a buy to let much nearer my home which will be easier to manage and may incur less maintenance but won't get as much rent?

Can't decide what's for the best??? Any advice?

Sorry about your dad - I lost mine a few years back and it takes time to manage the grief.

Perhaps now wouldn't be the best time to rush into any decisions?
Can you afford to buy your brother out?
Does he definitely want to sell?

If the current tenant wants to continue, could you not continue the tenancy as a rolling one, with say, 2-3 months notice? That's what often happens after the end of a fixed short term tenancy - you don't necessarily have to extend it in blocks of a year.
Then you could see how much of an issue it is managing it from afar, and it would also give you time to check out the local market more?

Alternatively, if the current house is getting more rent, then you could pay an agent to manage it all and you might end up with a similar income and none of the hassle?
In which area are house prices likely to grow more in the future?