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.
If you live anywhere in Scotland and are finding it difficult to manage your finances or cope with your personal debts then Scotland Debt Solutions can help. You can contact any of our offices directly to arrange a free and confidential consultation.
Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]
Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]
It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]
If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]