Top 10 most affordable places to buy a home in Great Britain
Halifax Bank has revealed the top ten places in Great Britain that are considered the most "affordable" in the current housing market.
Research by the lender found Scotland was home to the "most affordable" place with Inverclyde, which is just west of Glasgow, taking the top spot. Halifax found properties in Inverclyde had an income ratio score of just 2.9 - this means that property prices were just 2.9 times the average full time earnings in the county.
Following in second place was Dumfries and Galloway - again in Scotland - with a score of 3.2 and East Ayrshire with a score of 3.3. These are significantly better scores when compared with the least affordable place to buy in the country - Westminister and the city of London - which had a ratio score of 16.
Hull was named England’s most affordable location with a ratio score of 3.3, while Blackpool (3.4) and Burnley (3.7) were the only other English areas to make the top 10. Last summer, Halifax found that the cost of a typical house was 7.3 times the average full time earnings in Britain, Halifax said this was a "record high" with a home costing an average of £293,586 and the average annual salary of a full-time worker bing £40,196.
This has gone down albeit only slightly due to a recent slowdown in the property market. Currently, The cost of a typical house is 6.7 times average earnings in Britain with the typical house price having now fallen to £286,276, while average earnings have risen to £43,090.
London flat for rent for £1,400 a month with bed tucked away in kitchen cupboard
Halifax said however that it was still higher than the 6.2 times earnings ratio seen in early 2020 before the pandemic struck, while it added that soaring mortgage rates means housing affordability is still stretched.
The bank said typical UK monthly mortgage costs have increased by 22% over the past year, from £1,020 to £1,249 - this is based on the typical monthly cost of a five-year fixed rate mortgage, with a 25-year term and a 25% deposit. Halifax said this equates to mortgage costs as a percentage of income rising from 30% to 35% over the last year.
Kim Kinnaird, mortgages director, Halifax, said: “We don’t yet know what the ‘new normal’ looks like for mortgage rates and house prices over the longer-term. But we expect the market to rebalance as both buyers and sellers adjust their expectations to reflect higher costs and lower demand.
“It’s likely the gap between average earnings and property prices will narrow over time, which will be welcome news to first-time buyers in particular, especially in areas which could offer better value for money.”
Top 10 most affordable places to live
- Inverclyde - Scotland - 2.9
- Dumfries and Galloway - Scotland - 3.2
- East Ayrshire - Scotland - 3.3
- Hull - Yorkshire and Humberside - 3.3
- West Dunbartonshire - Scotland - 3.3
- Dundee - Scotland - 3.4
- Blackpool - North West - 3.4
- North Lanarkashire - Scotland - 3.5
- North Ayrshire - Scotland - 3.5
- Burnley - North West - 3.7
Top 10 least affordable places to list
- Westminster / City of London - Greater London - 16
- Kensington and Chelsea - Greater London - 15.7
- Mole Valley - South East - 13.2
- St Albans - Eastern England - 13.1
- Elmbridge - Greater London - 12.7
- Hammersmith and Fulham - Greater London - 12.6
- Waverley - South East - 12.6
- Epsom and Ewell - South East - 12.2
- Guildford - South East - 11.7
- Epping Forest - South East - 11.7
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