Lloyds release latest affordable cities index

Lloyds Bank has published its rundown of the most affordable cities in the UK, and it’s a list dominated by the north of England, Scotland, Wales and Northern Ireland.

Stirling tops the rankings for the sixth consecutive year, and the Scottish city between Edinburgh and Glasgow ties for the lowest average house price to earnings ratio of 4.4 with Londonderry.

A ratio of 4.6 makes Bradford the most affordable city in England, just ahead of Lancaster. Swansea, at 5.2, is the top return for Wales, and linking these three is the substantial presence of students in each.

Liverpool also fares well in the Lloyds report. It has an affordability rating of 5.4, which befits a city seen as one of the best buy-to-let markets around yet where house prices have been on the rise. There are exciting new developments by the Mersey, with Liverpool Waters set to add 9,000 residential units and leisure and retail opportunities. Everton FC are also eyeing a move to Bramley-Moore Dock, close to the Liverpool Waters development currently under construction.

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

“However, the market has seen the number of first-time buyers at a high, and home owners are still attracted to cities across the UK, in spite of rising costs.”

“Over the past five years, more than half of northern cities have made the UK top 10 in house price growth, whereas over a longer period, southern cities dominate.”

At the other end if the scale, Oxford comes in at the head of the least affordable index. House prices in the university city outstrip average local earnings by 12 times, and a 10-year analysis of price rises reveals they have gone up by nearly 60% since 2008.

Leading the way in house price growth over the decade is Winchester, where homes have nearly doubled in price – by 93% – to an average of £542,000.