Which are the most affordable UK cities?
Home affordability for city dwellers has improved by nearly a quarter since 2008, according to the Lloyds TSB Affordable Cities Review. At £172,556, the average price for a city home in the UK is 5.6 times gross annual average earnings, 22% below the peak of 7.2 in 2008.
The marked improvement in affordability has essentially been driven by a significant fall in city house prices of 17% from a peak of £207,387 in 2008. Over the same period average earnings in cities have increased by 7%.
All 10 of the most affordable cities for homebuyers are in the North and unsurprisingly the 12 least affordable cities are all in southern England.
Londonderry in Northern Ireland is the most affordable city with an average property price – £94,776 – that is 3.38 times gross average annual earnings. The two next most affordable cities are also in Northern Ireland, Lisburn and Belfast.
The least affordable city in the UK is Oxford where the average property price is £299,459, nearly ten times gross average earnings in the area. Three cities in the south west are the next least affordable: Salisbury, Bath, and Truro.
The average price in Greater London – £300,412 – is 6.9 times gross average earnings in the capital making it the 11th least affordable city in the country. The most affordable boroughs are Greenwich and Bromley but prices are particularly high in relation to local earnings in Kensington & Chelsea and the City of Westminster.
“There has been a significant improvement in housing affordability in many of our major urban conurbations over the past five years, largely reflecting the general decline in house prices since 2008,” said Nitesh Patel, housing economist at Lloyds TSB. “There is a very clear north-south divide to the locations of the most affordable UK cities with significantly better affordability in the north in general. There has also been remarkably little change in the identity of the most and least affordable cities over the past decade. Looking forward, the marked improvement in city affordability is likely to help support demand for those able to raise the necessary funds to enter the housing market.”Tagged in: real estate
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