Saturday 2 February 2019 1:04 pm

House prices drastically outpacing wage growth in UK cities as Oxford named least affordable place to live

House prices in UK cities are outpacing wage growth by 11 per cent, meaning home affordability is at its lowest level since 2007, according to new data from Lloyds Bank. 

The report reveals that the average price of a house in a city in Britain has risen from £180,548 in 2013 to its highest ever level of £248,233 in 2018, an increase of more than 37 per cent. 

Meanwhile, annual earnings have only risen by 11 per cent over the same period, to £34,366.

Scroll down for full tables

Oxford has been the named the least affordable city in the UK with an average house price of £460,184, which is 12.6 times more than the average annual salary of £36,430.

Chichester, Winchester and Truro all had average house prices of more than 11 times annual earnings, with Greater London, Bath and Cambridge just behind. 

The data for London "disguises considerable variations across the capital with central boroughs significantly less affordable than the Greater London average" according to the report. 

“Buying a home in UK cities remains challenging, as average house prices are outpacing wage growth. However the market has seen the number of first-time buyers at a high and home owners are still attracted to cities across the UK, in spite of rising costs," said Andrew Mason, mortgage products director at Lloyds Bank.

“Over the past five years, more than half of northern cities have made the UK top 10 in house price growth, whereas over a longer period, southern cities dominate.”

Stirling in Scotland remained the most affordable city in Britain for the sixth consecutive year with house prices just 4.4 times earnings. 

It was followed closely by Londonderry, Bradford, Lancaster and Belfast. 

City affordability from 2008 – 2018. 

Year       Average UK city house price (£) Average full-time mean earnings (£) Price to earnings ratio
2008 182,467 28,879 6.3
2009 168,734 29,663 5.7
2010 173,427 29,851 5.8
2011 170,076 30,079 5.7
2012 171,745 30,643 5.6
2013 180,548 31,038 5.8
2014 194,374 31,443 6.2
2015 209,837 31,731 6.6
2016 225,238 32,483 6.9
2017 232,945 33,413 7.0
2018 248,233 34,366 7.2

Top 20 most affordable cities in the UK, 2018

UK Cities Region Price to earnings ratio
Stirling Scotland 4.4
Londonderry Northern Ireland 4.4
Newry Northern Ireland 4.5
Bradford Yorkshire and Humberside 4.6
Lancaster North West 4.7
Belfast Northern Ireland 5.0
Aberdeen Scotland 5.0
Perth Scotland 5.1
Hereford West Midlands 5.1
Sunderland North 5.2
Carlisle North 5.3
Liverpool North West 5.4
Dundee Scotland 5.4
Swansea Wales 5.5
Glasgow Scotland 5.5
Stoke on Trent West Midlands 5.5
Durham North 5.5
Hull Yorkshire and Humberside 5.6
Inverness Scotland 5.8
Derby East Midlands 5.9

Top 20 least affordable cities in the UK, 2018

UK Cities Region Price to earnings ratio
Oxford South East 12.6
Chichester South East 11.5
Winchester South East 11.3
Truro South West 11.1
Greater London Greater London 10.3
Bath South West 10.3
Cambridge East Anglia 10.3
Southampton South East 9.7
Brighton and Hove South East 9.6
Chelmsford South East 9.3
Bristol South West 9.1
Exeter South West 9.1
Leicester East Midlands 8.6
Salisbury South West 8.3
Norwich East Anglia 8.2
York Yorkshire and Humberside 8.0
Ely East Anglia 7.9
Canterbury South East 7.8
St Albans South East 7.8
Worcester West Midlands 7.7

 

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