Average UK city house prices rise by 32%
Average house prices in UK cities have risen by 32 per cent, new findings show.
Research from Lloyds Bank found the price went up from £169,966 in 2012 to £224,926 this year. However, average annual earnings over the same period jumped by just seven per cent to £32,796.
The study found that average affordability in the nation’s cities worsened with house prices increasing from 5.5 times the average annual earnings to 6.9 in 2017.
The most expensive average house price is Oxford’s (£385,372), making it 10.7 times the annual gross average earnings in the area. Five other cities have average house prices that are a minimum of ten times the average annual salary.
What’s more, the study suggests a significant north/south divide, as Lichfield (8.3), York (7.6) and Leicester (7.6) are the only cities away from the south in the top 20 most expensive.
Stirling in Central Scotland is the cheapest, boasting an average price of £173,847 (3.7). Londonderry in Northern Ireland (3.8) is the second least expensive in the UK.
Andy Mason, Lloyds Bank mortgage products director, said:”City living is becoming increasingly expensive with average house prices at least 10 times average annual earnings in five of the UK’s cities.
“Affordability levels have worsened for four consecutive years as average city house prices continue to rise more steeply than average wage growth.”
St Albans saw the most significant price rise of any UK city in the past decade, recording a gain of 65 per cent between 2007 and 2017. This is compared to the UK cities average of 21 per cent.
In Greater London and Winchester, prices are 10.5 times the annual gross average salary. However, the report suggests the London average figure does not properly emphasise the gap in prices between costly central boroughs and other areas.