Lloyds’ bank has recently compiled an interesting survey to compare housing affordability of UK cities. Using the simple metric of average house price versus average earnings they created an affordability ratio.
As a starting point, it’s interesting to note that in the five years between 2013 and 2018 average house prices in UK cities grew from £180k to £248k, a rise of 37%. In contrast, city wages grew just 11% to a little over £34k over the same period.
So where is the greatest disparity between wages and house prices and where is home ownership more affordable as a function of earnings?
Seven cities average house prices are more than ten times average salaries. Greater London, Winchester, Chichester, Truro, Oxford and Cambridge and Bath.
And if you want your salary to go the furthest in the property market? Then Stirling is the place to live. If you prefer to live in England then Bradford has a house price to salary ratio of just 4.6 and for Wales, Swansea comes in at 5.5.