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
2008182,46728,8796.3
2009168,73429,6635.7
2010173,42729,8515.8
2011170,07630,0795.7
2012171,74530,6435.6
2013180,54831,0385.8
2014194,37431,4436.2
2015209,83731,7316.6
2016225,23832,4836.9
2017232,94533,4137.0
2018248,23334,3667.2

Top 20 most affordable cities in the UK, 2018

UK CitiesRegionPrice to earnings ratio
StirlingScotland4.4
LondonderryNorthern Ireland4.4
NewryNorthern Ireland4.5
BradfordYorkshire and Humberside4.6
LancasterNorth West4.7
BelfastNorthern Ireland5.0
AberdeenScotland5.0
PerthScotland5.1
HerefordWest Midlands5.1
SunderlandNorth5.2
CarlisleNorth5.3
LiverpoolNorth West5.4
DundeeScotland5.4
SwanseaWales5.5
GlasgowScotland5.5
Stoke on TrentWest Midlands5.5
DurhamNorth5.5
HullYorkshire and Humberside5.6
InvernessScotland5.8
DerbyEast Midlands5.9

Top 20 least affordable cities in the UK, 2018

UK CitiesRegionPrice to earnings ratio
OxfordSouth East12.6
ChichesterSouth East11.5
WinchesterSouth East11.3
TruroSouth West11.1
Greater LondonGreater London10.3
BathSouth West10.3
CambridgeEast Anglia10.3
SouthamptonSouth East9.7
Brighton and HoveSouth East9.6
ChelmsfordSouth East9.3
BristolSouth West9.1
ExeterSouth West9.1
LeicesterEast Midlands8.6
SalisburySouth West8.3
NorwichEast Anglia8.2
YorkYorkshire and Humberside8.0
ElyEast Anglia7.9
CanterburySouth East7.8
St AlbansSouth East7.8
WorcesterWest Midlands7.7

 

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