City Living Now Less Affordable

Monday, 31 March 2014

London’s sky rocketing house prices have been big news over the past few months, but it’s not the only city in the UK experiencing a boom. New research from Lloyds has found that living in British cities is becoming more and more expensive, with some properties now costing 5.8 times the local salary.

This represents a 5% price rise since last year, and is further confirmation that the current housing boom isn’t confined to inside the M25. In fact, the data found that London isn’t the UK’s most expensive city - that honour goes to Oxford. Properties in the University City are currently selling at 11 times the local salary: nearly double the national average.

The reason for the huge discrepancy in Oxford could be down to the fact that a large portion of residents that buy properties here still commute into London, where wages are significantly higher. However, that doesn’t explain the rest of the top five, which includes Truro in Cornwall and Bath in Somerset. The bohemian enclave of Brighton and Hove also made the list, while Winchester took the honour of being Britain’s second most expensive city. We can only hope that the residents of these affluent cities have protected their sizeable investments with the right level of buildings insurance.

While city living is becoming less affordable across the country, the majority of Britain’s most expensive cities are concentrated in the south of England. The only northern city to make the ‘least affordable’ list was York at number 20, while cities in Scotland, Wales, and Northern Ireland failed to make an appearance.

As for the most affordable cities, Stirling in Scotland was ranked as the most affordable, with below average property prices sitting at 3.3 times the local salary. Derry, Newry, and Belfast in Northern Ireland also featured in the top five, with Bradford in Yorkshire finishing the list.

Sources
1. www.theguardian.com/money/2014/mar/10/oxford-least-affordable-city-house-prices-lloyds  
2. www.telegraph.co.uk/finance/personalfinance/houseprices/10687271/House-prices-most-and-least-affordable-cities-in-the-UK.html
 

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