Home Affordability in British Cities at ‘Worst Level Since 2008’
February 28, 2017
The costs associated with buying a home in cities around the UK are the least affordable they have been in almost a decade.
That’s according to new figures from Lloyds Bank which show that average house price increases are dramatically outpacing rises in typically earning levels in cities nationwide.
In fact, the numbers suggest that while the average cost of a house in a UK city has risen by 32 per cent since 2012, the average annual salary of a British city dweller has only increased by 7 per cent during that same timeframe.
Perhaps unsurprisingly, the figures are particularly striking in Greater London, where the average cost of a house apparently increased by as much as 57 per cent between 2012 and 2017.
However, Oxford topped the Lloyds Bank list of the most unaffordable cities in the UK, with the typical cost of a property there reportedly worth as much as 11 times as much as the average resident’s annual salary.
Meanwhile, the most affordable city in the country was found to be Stirling in central Scotland, where the average house price was only 3.7 times higher than the average resident’s annual salary.
Glasgow also made the bank’s list of the top 10 most affordable cities in the UK, with average house prices there apparently worth roughly 5.2 times as much as the typical annual earnings level.
Stirling is one of the newest cities in Scotland, having only been granted official city status by the Queen as part of her Golden Jubilee celebrations in 2002.
Reflecting on his organisation’s latest findings about affordability in British cities, Andrew Mason from Lloyds Bank said: “City living is becoming increasingly expensive with average house prices at least 10 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,” he added.
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