The latest market insight from My Home Move Conveyancing reveals which English counties are currently the most affordable for homebuyers both nationally and in each region of the nation, based on the house price to income ratio required.
My Home Move Conveyancing looked at the average house price in each English county and divides it by the average annual income in that county to find the house price to income ratio in the current market, thus revealing which counties have the most and least affordable housing markets relative to local average income.
An affordability ratio is displayed as a number, eg 4.1, and the lower that number, the more affordable the county is.
National picture
The index reveals that England’s national affordability ratio currently stands at 8.5, based on an average annual salary of £35,955 and an average house price of £305,879.
The most affordable county in the whole country is Durham. Durham’s average house price is currently £131,742, while the average annual salary is £30,407, thus producing an affordability ratio of 4.3.
At the other end of the scale, Oxfordshire is the nation’s least affordable homebuying county. An average local house price of £427,983 meets an average salary of £37,696 to create an affordability score of 11.4.
Devon also ranks ahead of the capital, where the average house price comes in at 11.1 times the average income, with London the third least affordable area with a house price to income ratio of 11.
North East
As mentioned, Durham is the most affordable county in England and, therefore, the North East with an affordability score of 4.3, but in a close second is Tyne & Wear with a score of 5.8, followed by Northumberland (6.5).
North West
With an average house price of £188,563 and an average annual salary of £32,215, an affordability score of 5.9 makes Lancashire the most affordable homebuying county in the North West.
Cumbria (6.0) and Merseyside (6.2) come in a close second and third.
Yorkshire & Humber
South Yorkshire is the most affordable county in Yorkshire & Humber with an affordability score of 6.2 based on an average local house price of £192,370 and an average salary of £31,225.
West Yorkshire (6.7) and East Riding of Yorkshire (7.1) place second and third respectively.
East Midlands
Both Derbyshire and Lincolnshire have an affordability score of 7.2 making them the joint-most affordable counties in the East Midlands. Lincolnshire’s average house price is £225,392 while Derbyshire’s stands at £233,861. The two counties have average salaries of £31,316 and £32,321 respectively.
Nottinghamshire has a score of 7.6 followed by Northamptonshire at 8.4.
West Midlands
In the West Midlands region, West Midlands County is the most affordable area. The local average house price of £236,914 and average salary of £33,163 produce an affordability score of 7.1.
Staffordshire scores 7.5 and Warwickshire scores 8.5.
East of England
In the East of England, Suffolk and Essex are the most affordable homebuying counties, both with a score of 8.9. Norfolk (9.0) and Cambridgeshire (9.2) place second and third.
South East
In the South East, the most affordable county is Kent. The average cost of a home is £342,268 and the average income is £35,992 producing an affordability score of 9.5.
Hampshire scores 9.8 while Buckinghamshire scores 10.0.
South West
Wiltshire is the most affordable homebuying county in the South West. An average house price of £329,279 and average salary of £34,717 gives an affordability score of 9.5.
Somerset scores 9.6 and Gloucestershire scores 9.8.
Greater London
Greater London remains one of the least affordable homebuying regions in England. An average house price of £520,747 and average salary of £47,301 create a score of 11.0.
Director of My Home Move Conveyancing, Alistair Singer, said, “Whilst we often focus stories of property market affordability on the value of the average home, it’s important to remember that this is, of course, relative to the income earned by homebuyers looking to purchase in these pockets of the property market.
So whilst London may be home to the highest average house price of all counties in England, it’s actually Oxford that is home to the worst level of affordability when considered alongside the average income.
Similarly, whilst the North East may boast the highest degree of affordability where house prices are concerned, that’s not to say that other regions don’t have a varying degree of affordability on offer from one county to the next.
When hunting for your next home, understanding the local market is vital and you may find that you can significantly boost your purchasing power by looking to a neighbouring county.”
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