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Which UK Cities Have the Most Affordable Property Prices

Soaring property prices, a surplus of buyers and elevated interest rates. Britain’s housing market seems to be thriving, despite warnings from the Bank of England of a potential 16% decline in property cost. According to the latest data released by the Office for National Statistics, in fact, the average cost of a UK property has by a whopping 10% in the last year. With a cost of living crisis looming, many would-be first-time buyers are avoiding stepping onto the property ladder, preferring to rent their homes. With costs across Britain at a record high, however, is renting really sustainable? 

In the last year, the cost of property rent in London has increased exponentially, rising by 15.8%. Elsewhere, rent prices have increased by 11.8%. It now costs, on average, £2257 per month to rent property in London. In Manchester, rent prices have surged even more dramatically, rising by 23.4%. There have also been significant increases in Kent, Liverpool, Weymouth, Torquay and Margate. The market is oversaturated with potential tenants, and there simply aren’t enough rental properties to go around. 

At Buzz Capital, we believe that buying a property is a fantastic investment. Saving for a deposit, however, can be difficult, particularly for first-time buyers. With this in mind, we’ve found out which city is the most affordable 

Data Set: Buzz Capital | Property Data | July 22

 

Key Findings

  • According to our data, Bradford has the smallest disparity between property cost and average yearly salary. On average, Bradford employees receive £30 400 per year from work. This is 22% of the average property price, which is £143 960.
  • Westminster has the most significant disparity between property cost and average yearly salary. On average, employees in Westminster receive £60 100 a year from work. This equates to just 3.5% of the average property price, which is £1 737 494. 
  • Property prices in Westminster were the most expensive, with the average home costing a whopping £1 737 494. The cheapest homes in Westminster were flats which sold, on average, for £1 382 836. In Mayfair, the average property price was £5 521 083. 
  • Property prices in Carlisle were the cheapest, with the average home costing just £143 958. 
  • Wages are highest in Westminster, with employees earning, on average, £60 100 per year. The average yearly wage is also high in London, Cambridge, Derby and Oxford. 
  • Wages are lowest in Hull with employees earning, on average, £27 900 per year. The average yearly wage is also low in Sunderland, Plymouth, Lichfield and Hereford. 

The ten UK cities where salary is most in line with property cost

City Average House Price Average Salary Percentage of cost
Bradford 143 960 31 700 22.02
Stoke-on-Trent 147 697 31 800 21.53
Carlisle 143 958 30 400 21.12
Derby 207 739 40 500 19.5
Kingston upon Hull 150 782 27 900 18.5
Sunderland 158 916 29 200 18.37
Doncaster 167 125 30 700 18.37
Preston 174 696 31 800 18.20
Liverpool 190 780 34 400 18.03
Lancaster 184 957 32 100 17.36

 

Bradford

Steeped in rich heritage and crammed with culture, Bradford is often underappreciated by visitors to Yorkshire. Bradford is the third largest city in Yorkshire and is popular with commuters, as it is situated between Manchester and Leeds. Both cities are easily accessible by car or train. Described as something of a cultural melting pot, Bradford is incredibly diverse. One in four residents, in fact, describe themselves as being of Asian/British Asian origin. Bradford boasts a wealth of fantastic international food restaurants and bars and is frequently referred to as the “curry capital” of Britain.

Historically, Bradford is associated with the industrial revolution and rapid urbanisation. There is an abundance of green spaces to enjoy, however. The famed Ilkley Moor, which is a designated Site of Special Scientific Interest, is only a short drive away. The average yearly salary in Bradford is comparatively high – 22% of the average property price. 

 

Stoke-on-Trent

Stoke-on-Trent, also known as “The Potteries”, is synonymous with artistry and creative spirit. Endowed with award-winning museums, gardens, animal parks and shopping villages, Stoke-on-Trent is the perfect place to live if you’re in search of variety and adventure. Trentham Monkey Forest, which is home to 140 free-roaming Barbary macaques, is popular with both domestic and international tourists alike. Stoke-on-Trent is also the closest city to Alton Towers. Employees in Stoke are paid, on average, £31 800 a year, higher than in 14 other UK cities. This is around 21.5% of the average property price. 

Carlisle

Carlisle, which is over 2000 years old, boasts two Areas of Outstanding Natural Beauty and one World Heritage Site. Home to Hadrians Wall, Carlisle Cathedral and a wealth of museums, Carlisle is regarded as something of a jewel in the North West. If you’re looking for history, Carlisle might be the city for you. The castle, which is over 900 years old, was once a principle fortress, a guardian over England’s north-western border with Scotland. It has braved more sieges than any other structure in the British Isles. House prices in Carlisle are the cheapest in the UK with property costing, on average, £143 958. The average salary, which admittedly ranks amongst the lowest in the UK, is £30 400, or 21.1% of the cost of a house. 

The ten UK cities with the most significant disparities between property cost and annual wage

City Average House Price Average Salary Percentage of cost
Westminster 1 875 287 42 385.2 1.99
St Albans 633 785 32 100 5.06
Bath 550 034 35 300 6.42
Winchester 591 494 38 500 6.51
Oxford 571 346 40 400 7.071
London 711 347 53 700 7.55
Brighton and Hove 449 197 36 300 8.08
Chichester 404 295 33 800 8.36
Cambridge 548 099 46 900 8.56
Chelmsford 392 152 37 200 9.49

 

Which London boroughs have the most affordable property prices?

Ranking the top 10

Borough Average Salary Average House Price Percentage of cost
Barking and Dagenham 31 673.20 353 893 8.95
Croydon 35 146.80 419 001 8.39
Havering 35 885.20 453 384 7.91
Bromley 41 854.80 537 970 7.78
Newham 32 505.20 440 749 7.37
Waltham Forest 38 110.80 526 329 7.24
Bexley 37 980.80 525 817 7.22
Tower Hamlets 41 272.40 591 734 6.97
Redbridge 37 408.80 537,652 6.96
Harrow 37 809.20 545 708 6.93

The least affordable boroughs to buy a house

 

Borough Average Salary Average House Price Percentage of cost
Kensington and Chelsea 46410 2,326,357 1.99
Westminster 42385.2 1,875,287 2.26
Camden 39863.2 1,160,247 3.44
Hammersmith and Fulham 40690 1,036,132 3.93
Ealing 32884.8 796,393 4.13
Barnet 32078.8 770,649 4.16
Richmond upon Thames 46446.4 981,621 4.73
Islington 43830.8 915,021 4.79
Brent 33264.4 689,450 4.82
Merton 36535.2 751,351 4.86

Buying a house: Our top tips for first-time buyers

  • Before buying a property, you will need to save for a deposit. A deposit is typically around 5% of the cost of the home. If possible, we recommend saving more than 5%, as this will increase accessibility to a wider range of mortgages, many of which will have lower interest rates. When applying for a mortgage, act quickly. This will make your application more attractive to prospective sellers, as they often want to sell their property quickly. 
  • Consider using a virtual mortgage broker. They are often more accessible, as mortgage services are oversaturated following the Covid-19 pandemic. 
  • Don’t be afraid of negotiation, even if you are a first-time buyer. Purchasing property which requires renovation or refurbishment work can be a fantastic way to get a great deal. At Buzz Capital, we offer property development loans. Property development loans enable recipients to borrow up to a million pounds. Properties can then be remortgaged or sold at a higher price to repay the loan.
  • Make sure to ask questions, and thoroughly read any small print on contracts. Buying your first house can be overwhelming, so make use of knowledge from industry experts such as solicitors and mortgage brokers. 
  • Prepare any documents, such as ID and proof of address in advance. Mortgage applications also require bank statements, pension plans and payslips. Thorough planning can speed up the buying process. 

Methodology

  • We used the property site Rightmove to identify the average cost of housing in 50 cities across the UK and every London borough.
  • We then used the data visualisation site Plumpot to identify the average wage in all 50 cities and London boroughs.
  • To determine the disparity between the average wage and the average cost of the property, we divided yearly earnings by house price and multiplied this by one hundred.