House prices in UK cities now average eight times local annual earnings, as price growth continues to outstrip wage rises. New research by Halifax found that houses cost anything from five times your yearly salary to 14 times, depending on which city you live in. So, where is the most and least affordable cities to buy a home, and how to find the best place to live.
Properties in cities cost eight times average earnings
You might have read all about homeowners relocating to the country since the start of the Covid-19 pandemic; but cities certainly haven’t been left behind when it comes to house prices. Halifax found that prices in UK cities have grown by 10.3% in the last year. While average earnings rose by just 2.1%; this has resulted in properties becoming less affordable for buyers. The average house price in a UK city is now 8.1 times the average annual earnings of someone living there. This figure has now risen for eight consecutive years, having stood at 5.6 in 2013!
The most affordable cities to buy a home
Source: Halifax
If you’re thinking of buying a property, you might find these figures intimidating; but affordability varies dramatically depending on where you’re buying in the UK.
The 10 most affordable cities to buy a home:
The 10 most affordable cities to buy a home in the UK all come in at less than six times average annual earnings. Derry/Londonderry, Carlisle and Bradford are the only three cities where house prices are below five times earnings. Hereford in the West Midlands was the most southerly city in the top 20, with prices at 6.6 times earnings, reflecting a significant north/south divide in property prices.
Most unaffordable cities to buy a home
Source: Halifax
At the other end of the spectrum, Winchester has replaced Oxford as the UK’s least affordable city. Homes in the Hampshire city cost a massive 14 times the annual earnings of people living and working there. All of the top 10 most unaffordable cities have prices of at least 10 times average earnings, and the vast majority are located in the south of England.
Winchester has the highest average house price of any UK city (£630,432), while Hull has the lowest (£156,924). That means you could buy four homes in Hull for less than the price of one in Winchester. Halifax states that the average cost of buying a home in a UK city has increased by 10% in the past year. Salisbury has seen the biggest rise (a massive 36%), followed by Hereford (29%), Lancaster, and Birmingham (both 19%). Halifax found that Gloucester is the city with the highest growth over the past decade. Prices in Gloucester have increased by 101% since 2011; well outstripping the UK average of 71%!
How to find the best place to live
Finding the right place to live isn’t just about the price; it’s also a whole range of work, leisure, and lifestyle factors. It’s important to thoroughly research an area before taking the jump to moving there. If you like eating out, are there good restaurants nearby? If you prefer exercising regularly, are the gym facilities any good in the local area? You may even want to consider things like transport connections, pollution levels; and services such as banks and GP surgeries, and of course local schools.
On that note, if you’re looking to sell your property and relocate even if it’s to the town next door, then get in touch with our team. Find out how we can help you by contacting our team on 01634 968111 or book an appointment online.
