Had you done as I said about using [man]print_r/man you would probably have seen the problem.
Assuming that area is called area in your database then this change to your foreach loop
foreach ($area_array as $thisarea) {
//print_r($thisarea);
print("<option value=\"".$thisarea['area']."\">".$thisarea['area']."</option>\n");
}
should give results like this
<select class="input" name="area" id="area">
<option value="" selected> </option>
<option value="burnham">burnham</option>
<option value="leeds">leeds</option>
<option value="slough">slough</option>
<option value="hythe">hythe</option>
</select>