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Lloyds Bank has produced a report on the affordability of homes in UK cities showing the average price of a house in a city is now 6.9 times the average annual salary.
These are the least affordable home figures since 2008!
Since 2012 the average city house price has risen 32% from £169,966 to £224,926 while over the same five year period city incomes have only increased by 7% to £32,726.
Top of the least affordable city league table is Oxford with the average house price of £385,372 compared to an average income of £36,033 giving a cost to ratio of 10.69.
Conversely the city of Sterling came out the most affordable with house prices on average just 3.7 times annual salaries.
As well as Oxford there were four other cites where the affordability ratio was above 10 times income:
- Winchester 10.5
- Greater London 10.5
- Cambridge 10.3
- Chichester 10.0
The most affordable cities were all in Northern England, Scotland and Wales:
- Sterling 3.7
- Bradford 4.4
- Hereford 4.7
- Sunderland 4.9
- Durham 5.0
- Glasgow 5.2
- Swansea 5.2
Lloyds Bank Mortgage Products Director, Andy Mason said cCity living is becoming increasingly expensive with average house prices at least ten times average annual earnings in five of the UK’s cities. Affordability levels have worsened for four consecutive years as average city house prices continue to rise more steeply than average wage growth.
“House prices in the south have generally seen stronger growth than in the north. St Albans has recorded the biggest gains over the past decade, whilst London has been the top performer during the recovery.”
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