Buying a city home is the least affordable since 2007

A Lloyds Bank report reveals, that the average house price in a UK city, in 2018 equates to 7.2 times the average annual earnings. This report therefore suggests that buying a home in the UK is the least affordable since 2007, home buyers in 2007 spent 7.5 time their income.

The report identifies seven cities where average house price tops, 10 times earnings, Cambridge, Oxford, Chichester, Truro, Winchester, Bath and London.

Lloyds Bank identified that Oxford is the least affordable city in the UK, property there, costs a staggering 12 and half times average annual earnings.

Andrew Mason, mortgage products director, Lloyds Bank, said: “Buying a home in UK cities remains challenging, as average house prices are outpacing wage growth.

“Home owners are still attracted to cities across the UK, in spite of rising costs.”

According to Lloyds Bank, with the average house price-to-earnings ratio, the top 20 affordable cities in the UK are:

-1. Londonderry, Northern Ireland, 4.4
-1. Stirling, Scotland, 4.4
3. Newry, Northern Ireland, 4.5
4. Bradford, Yorkshire and Humberside, 4.6
5. Lancaster, North West, 4.7
-6. Belfast, Northern Ireland, 5.0
-6. Aberdeen, Scotland, 5.0
-8. Perth, Scotland, 5.1
-8. Hereford, West Midlands, 5.1
10. Sunderland, North East, 5.2
11. Carlisle, North West, 5.3
-12. Liverpool, North West, 5.4
-12. Dundee, Scotland, 5.4
-14. Swansea, Wales, 5.5
-14. Glasgow, Scotland, 5.5
-14. Stoke-on-Trent, West Midlands, 5.5
-14. Durham, North East, 5.5
18. Hull, Yorkshire and Humberside, 5.6
19. Inverness, Scotland, 5.8
20. Derby, East Midlands, 5.9

According to Lloyds Bank, with the average house price-to-earnings ratio, the top 20 least affordable cities in the UK are:

Oxford, South East, 12.6
2. Chichester, South East, 11.5
3. Winchester, South East, 11.3
4. Truro, South West, 11.1
-5. London, 10.3
-5. Bath, South West, 10.3
-5. Cambridge, East Anglia, 10.3
8. Southampton, South East, 9.7
9. Brighton and Hove, South East, 9.6
10. Chelmsford, South East, 9.3
-11. Bristol, South West, 9.1
-11. Exeter, South West, 9.1
13. Leicester, East Midlands, 8.6
14. Salisbury, South West, 8.3
15. Norwich, East Anglia, 8.2
16. York, Yorkshire and Humberside, 8.0
17. Ely, East Anglia, 7.9
-18. Canterbury, South East, 7.8
-18. St Albans, South East, 7.8
20. Worcester, West Midlands, 7.7

Using Lloyds Bank sister bank, the Halifax’s housing statistics and the Office for National Statistics earnings figures, the Index was able to track the affordability of housing across 62 cities.